1.Firm R owned depreciable real property subject to a $300,000 nonrecourse mortgage. The propertys FMV is only $250,000. Consequently, the firm surrendered the property to the creditor rather than continuing to service the mortgage. At date of surrender, Firm Rs adjusted basis in the property was $195,000. Required: Determine Firm Rs cash flow consequences of the disposition, assuming that the gain recognized is taxed at 21 percen?

2.Calvin Corporations office was burglarized. The thieves stole 10 laptop computers and other electronic equipment. The lost assets had an original cost of $35,000 and accumulated tax depreciation of $19,400. Calvin received an insurance reimbursement of $10,000 related to the theft loss. Required: Determine the amount and character of gain or loss recognized as a result of this theft.