• For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer. Provide explanation and calculations for realized & recognized gain or loss for the seller and the adjusted basis for the buyer.
  • A. Kiera sells Parchment, Inc. stock (adjusted basis $17k) to Phillip, her brother, for its fair market value of $12k.
  • B. Amos sells land (adjusted basis $85k) to his nephew, Boyd, for its fair market value of $70k.
  • C. Susan sells a tax-exempt bond (adjusted basis $20k) to her wholly-owned corporation for its fair market value of $19k.
  • D. Sinbad sells a business truck (adjusted basis $20k) that he uses in his sole proprietorship to his cousin, Agnes, for its fair market value of $18, 500.
  • E. Martha sells her partnership interest (adjusted basis $175k) in Pearl Partnership to her daughter, Kim, for $220k.