For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer.

Note: If an amount is zero, enter "0.

a.Bonnie sells Parchment, Inc. stock (adjusted basis $17,000) to Phillip, her brother, for its fair market value of $12,000.

b. Amos sells land (adjusted basis $85,000) to his nephew, Boyd, for its fair market value of $70,000.

c.Susan sells a tax-exempt bond (adjusted basis $20,000) to her wholly owned corporation for its fair market value of $19,000.

d. Ron sells a business truck (adjusted basis $20,000) 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 $175,000) in Pearl Partnership to her adult daughter, Kim, for $220,000.

How to compute the Buyer's Adjusted Basis?

2.Harold conducts a business with the following results for the year:

Revenue	$20,000
Depreciation on car	3,960
Operating expenses of car	3,100
Rent	6,000
Wages	8,200
Amortization of intangibles	680

a. If the activity was a hobby, Harold will report $___ as income and deduct $_____ as expenses.