Amna owns undeveloped land with an adjusted basis of $130,000. Amna sells the property to George for $169,000.

Required:

1) What is Amnas realized and recognized gain?

2) To what IRC section does the gain on the property apply?

a) 1221

b) 1231

c) 1245

d) 1250

3) If the land is used in a trade or business, to what IRC section does the gain on the property apply?

a) 1221

b) 1231

c) 1245

d) 1250