31.Fremont Corporations and Dement Corporation exchange equipment with the following particulars:

Fremont Dement

Fair market value $44,000 $54,000

Adjusted basis $20,000 $60,000

Cash paid $10,000

What are Fremont;s and Dement's realized and recognized gains or losses on the exchange and the bases in the equipment they acquire in the exchange?

55. Gary and Gertrude are married on April 8,2015. They use Gertrude's home as their residence. Gertrude purchased the home on November 14,2013, for $60,000. On February 19.2016, Gertrude is killed in an automobile accident. Gary is distraught and sells their residence on May 14,2016 for $110,000 and moves to Portugal. How much of the gain on the sale of the residence is taxable?