2.

Brock received 600 shares of Alabama Corporation stock from his uncle as a gift on July 20,2022, when the stock had a $144,000 fair market value (FMV). His uncle paid $72,000 for the stock on April 12, 2006. The taxable gift was $144,000, because his uncle made another gift to Brock for $32,000 in January and used the annual exclusion. The uncle paid a gift tax of $28,800. Without considering the transactions below, Brock's AGI is $30,000 in 2023 . No other transactions involving capital assets occur during the year. Analyze each transaction below, independent of the others, and determine Brock's AGI in each case. (Do not round intermediary calculations. Only round the amounts you input in the input fields to the nearest dollar. Use a minus sign or parentheses to enter a loss.) a. He sells the stock on October 12,2023 , for $151,000. b. He sells the stock on October 12, 2023, for $85,400. c. He sells the stock on December 16,2023 , for $139,000. Barb acquired only one tract of land seven years ago as an investment. In order to sell the land at a higher price, she lecides to subdivide it into 30 lots. She pays for improvements such as clearing and leveling, but the improvements re not considered to be substantial. Each lot has a basis of $10,000, and a selling price of $20,000. Selling expenses f $670 were incurred to sell two lots last year. This year, fifteen lots are sold, and selling expenses amount to $2,200. Requirement How much ordinary income and capital gain must be recognized in the prior and current year? First, calculate the total gain from the sale of lots in the prior year, and the allocation of that gain between ordinary income and a capital gain. (Complete all input fields. Enter a "0" for any zero balances.) Now compute the amounts for the sale of lots in the current year. (Complete all input fields. Enter a "0" for any zero balances.)