Question
1.Rafael sold an asset to Jamal. Rafael received $20,000 of cash, a parcel of land worth $50,000, and marketable securities of $10,000. Rafael also paid
1.Rafael sold an asset to Jamal. Rafael received $20,000 of cash, a parcel of land worth $50,000, and marketable securities of $10,000. Rafael also paid a commission of $7,000 on the transaction. What is Rafaels amount realized on the sale?
2.Hannah Tywin owns 100 shares of MM Inc. stock. She sells the stock on December 11 for $26 per share. She received the stock as a gift from her Aunt Pam on March 20 of this year when the fair market value of the stock was $18 per share. Aunt Pam originally purchased the stock seven years ago at a price of $12 per share. What is the amount of Hannahs recognized gain or loss on the stock?
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