(1) Terence, an individual, purchased some property in Sacramento, California, for $228,000 approximately 5 years ago. Terence exchanges his a parcel of land in Sacramento for another piece of land in Folsom, Califonria. What is Terences realized gain or loss, recognized gain or loss, and basis in the Folsom property in each of the following alternative scenarios? The transaction qualifies as a like-kind exchange and the fair market value of each property is $184,000.

(2)

George operates a business that generated revenues from services of $50 million in 2019 and reported deductible expenses other than interest of $49 million in 2019, which included depreciation expense of $500,000. The business paid interest expenses of $800,000 in 2019, none of which was for loans used to purchase tax-exempt investments.

What is the maximum business interest deduction that George will be eligible to claim this year? Use the most recent tax law (as modified by the CARES Act) and assume George's business is not eligible for the small business exception.