74. Fizbo Corporation is in the business of breeding and racing horses. Fizbo has taxable income of $5,000,000 other than from these transactions. It has nonrecaptured $1231 losses of $10,000 from 2014 and $13,000 from 2012 Consider the following transactions that occur during 2018: a. A building with an adjusted basis of $300,000 is totally destroyed by fire. Fizbo receives insurance proceeds of $400,000, but does not plan to replace the building. The building was built 12 years ago at a cost of $420,000 and was used to provide lodging for employees. b. Fizbo sells four acres of undeveloped farmland (used for grazing) for $50,000. Fizbo purchased the land 15 years ago for c. Fizbo sells a racehorse for $250,000. The racehorse was purchased four years ago for $200,000. Total depreciation taken on d. Fizbo exchanges equipment that was purchased three years ago for $300,000 for $100,000 of IBM common $15,000. the racehorse was $160,000. Page 11-50 stock. The adjusted basis of the equipment is $220,000. If straight-line depreciation had been used, the adjusted basis would be $252,000. e. On November 1, Fizbo sold XCON stock for $50,000. Fizbo had purchased the stock on December 12, 2017, for $112,000 Part (1): After all netting is complete, what is Fizbo's total amount of income from these transactions to be treated as ordinary income or loss? What is its capital gain or loss? Part (2): What is Fizbo's taxable income for the year after including the effects of these transactions