Exercise $13-30($Algorithmic$)($LO$.3)$

Juliana purchased land three years ago for $$79,300.$ She made a gift of the land to Tom, her brother, in the current year, when the fair

market value was $$111,020.$ No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $$99,918.$

a$.$ Tom's basis in the land is $

and he has a realized

of $

on the sale.

b$.$ Assume instead that the land has a fair market value of $$71,370$ on the date of the gift, and that Tom sold the land for $$67,802.$

Tom's basis in the land is $

and he has a realized

of $

on the sale.