Hotchpot engaged in (or encountered) the following transactions (or events) in the current year. Determine separately for each part (a) through (i) how the matters indicated will be characterized for the current year, assuming in all parts other than (g)-(i) that Xi 1231(c) is inapplicable. Hotchpot sells some land used in his business for four years for $20,000. It had cost him $10,000. He also receives $16,000 when the State condemns some other land that he had purchased for $18,000 three years ago which he has leased to a third person. Same as (a), above, except that both pieces of land pieces of land inherited from Hotchpot's Uncle who died three months before the dispositions. At Uncle's death, the business land was worth $16,000 and the leased land was worth $18,000. Hotchpot sells a building used for several years in his business, which he depreciated under the straight-line method. The sale price is $15,000 and the adjusted basis $5,000. His two year old car, used exclusively in business, is totally destroyed in a fire. The car had a $6,000 adjusted basis but was worth $8,000 prior to the fire. He received $4,000 in insurance proceeds. In addition to the building and the car in (c), above, assume that Hotchpot had a painting that he had purchased two years ago which was held in connection with his business and which was also destroyed in the fire. The painting had been purchased for $4,000 and he received $8,000 in insurance proceeds. In addition to the building sale, car loss, and painting gain in (c) and (d), above, assume Hotchpot sells land used for several years in his business for $30,000. The land, which he had hoped contained oil, had been purchased for $50,000. Would Hotchpot be pleased if the Commissioner successfully alleged that the land in problem (e), above, was held as an investment rather than for use in Hotchpot's business What result under the facts of (d), above (building gain, car loss, and painting gain), if four years before the fire Hotchpot had had a $5,000 net Xi 1231 loss and three years before a $3,000 net Xi 1231 loss, and he had no other Xi 1231 transactions in other years. Same as (g), above, except that in addition two years before the tax year Hotchpot had a $6,000 net Xi 1231 loss. Same as (h), above, except that one year before the tax year Hotchpot had had a $10,000 net Xi 1231 gain. Hotchpot engaged in (or encountered) the following transactions (or events) in the current year. Determine separately for each part (a) through (i) how the matters indicated will be characterized for the current year, assuming in all parts other than (g)-(i) that Xi 1231(c) is inapplicable. Hotchpot sells some land used in his business for four years for $20,000. It had cost him $10,000. He also receives $16,000 when the State condemns some other land that he had purchased for $18,000 three years ago which he has leased to a third person. Same as (a), above, except that both pieces of land pieces of land inherited from Hotchpot's Uncle who died three months before the dispositions. At Uncle's death, the business land was worth $16,000 and the leased land was worth $18,000. Hotchpot sells a building used for several years in his business, which he depreciated under the straight-line method. The sale price is $15,000 and the adjusted basis $5,000. His two year old car, used exclusively in business, is totally destroyed in a fire. The car had a $6,000 adjusted basis but was worth $8,000 prior to the fire. He received $4,000 in insurance proceeds. In addition to the building and the car in (c), above, assume that Hotchpot had a painting that he had purchased two years ago which was held in connection with his business and which was also destroyed in the fire. The painting had been purchased for $4,000 and he received $8,000 in insurance proceeds. In addition to the building sale, car loss, and painting gain in (c) and (d), above, assume Hotchpot sells land used for several years in his business for $30,000. The land, which he had hoped contained oil, had been purchased for $50,000. Would Hotchpot be pleased if the Commissioner successfully alleged that the land in problem (e), above, was held as an investment rather than for use in Hotchpot's business What result under the facts of (d), above (building gain, car loss, and painting gain), if four years before the fire Hotchpot had had a $5,000 net Xi 1231 loss and three years before a $3,000 net Xi 1231 loss, and he had no other Xi 1231 transactions in other years. Same as (g), above, except that in addition two years before the tax year Hotchpot had a $6,000 net Xi 1231 loss. Same as (h), above, except that one year before the tax year Hotchpot had had a $10,000 net Xi 1231 gain