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Fred owns land with an adjusted basis of $60 and a fair market value of $100. The land is subject to a mortgage of $4.

Fred owns land with an adjusted basis of $60 and a fair market value of $100. The land is subject to a mortgage of $4. Fred sells the land to Dell who gives Fred $96 in cash and assumes the mortgage. 1) Does Fred realize gain/loss on the transaction and if yes how much? 2) Does Fred recognize gain/loss on the transaction and if yes how much?

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