Don Orr gave his daughter Donnee land worth $100,000 . The land cost Don $50,000 three years ago; he paid no gift taxes on the gift. Donnee subsequently sold the land to friend Fannie for $100,000 in cash and $20,000 in Pepsi stock. Calculate and explain Donnees sale of the land.

2. Sky Limit, a lawyer, went to a law seminar in Chicago and spent the following: airplane ticket, expensive hotel room, food, seminar fee, gift for wife, and ticket to a play. Explain what is deductible and what is not, and where it is deductible.

3. List and give an example of the three types of tax assets: