Consider the following situations. i (Click the icon to review each of the situations.) Read the...

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Consider the following situations. i (Click the icon to review each of the situations.) Read the requirement. (Round your answers to the nearest whole dollar. If a shareholder does not have a basis in the property stated, leave the box empty; do not enter a zero. For the type of change necessary, make sure to select an answer for each scenario.) Situation a. Fancy Corporation distributes land having a $205,000 FMV and a $70,000 adjusted basis to Pauline, its sole shareholder. The land, a capital asset, is subject to a $65,000 mortgage, which Pauline assumes. i (Click the icon to view the possible changes necessary to improve the tax consequences.) Gain or loss recognized Shareholder Property Amount Character a. Pauline Land $ 135,000 Capital gain Shareholder's Change necessary basis for to improve the property received tax consequences $ 205,000 Situation b. Donaldson Corporation distributes depreciable property to its two equal shareholders. Zach receives a milling machine having a $75,000 adjusted basis and a $105,000 FMV. The corporation claimed $50,000 depreciation on the machine. The corporation purchased the milling machine from an unrelated seller four years ago. Christine receives an automobile that originally cost $41,500 two years earlier and has a $26,500 FMV. The corporation claimed $23,500 depreciation on the automobile. Click the icon to view the possible changes necessary to improve the tax consequences.) Shareholder's Change necessary Gain or loss recognized Shareholder Property Amount Character basis for to improve the property received tax consequences b. Zach Milling machine Christine Automobile Consider the following situations. i (Click the icon to review each of the situations.) Read the requirement. (Round your answers to the nearest whole dollar. If a shareholder does not have a basis in the property stated, leave the box empty; do not enter a zero. For the type of change necessary, make sure to select an answer for each scenario.) Situation a. Fancy Corporation distributes land having a $205,000 FMV and a $70,000 adjusted basis to Pauline, its sole shareholder. The land, a capital asset, is subject to a $65,000 mortgage, which Pauline assumes. i (Click the icon to view the possible changes necessary to improve the tax consequences.) Gain or loss recognized Shareholder Property Amount Character a. Pauline Land $ 135,000 Capital gain Shareholder's Change necessary basis for to improve the property received tax consequences $ 205,000 Situation b. Donaldson Corporation distributes depreciable property to its two equal shareholders. Zach receives a milling machine having a $75,000 adjusted basis and a $105,000 FMV. The corporation claimed $50,000 depreciation on the machine. The corporation purchased the milling machine from an unrelated seller four years ago. Christine receives an automobile that originally cost $41,500 two years earlier and has a $26,500 FMV. The corporation claimed $23,500 depreciation on the automobile. Click the icon to view the possible changes necessary to improve the tax consequences.) Shareholder's Change necessary Gain or loss recognized Shareholder Property Amount Character basis for to improve the property received tax consequences b. Zach Milling machine Christine Automobile