I need help with my Take Home Quiz #3. I need all six problems completed. Here is my assignment attached to my question. Thank you.

TAKE HOME QUIZ #3 WINTER 2016 PROBLEM 1 Part 1: Mark sold his farm during the current taxable year. At the date of the sale, the farm had an adjusted basis of $215,000. The buyer paid him $350,000 in cash, and agreed to pay him $300,000 with interest at 5 percent one year from the date of sale. How much is Mark's realized and recognized gain on the sale for the current year and next year? Part 2: Margaret gives a parcel of land to her son, Max. She had purchased the land in 1996 for $185,000 and its fair market value on the date of the gift is $168,000. No gift tax is paid. Max subsequently sells the land for $172,000. Determine the realized and recognized gain or loss for both Margaret and Max. PROBLEM 2 Jan received 100 stock options (each option provides a right to purchase 10 shares of ABC stock for $15 per share) at the time she started working for ABC three years ago when ABC's stock was worth $10 per share. Now ABC's stock is worth $20 per share and she intends to exercise all her options. After acquiring the 1,000 ABC shares with her options, she held the shares for over one year and sold them at $30 per share. Situation A If the stock options are incentive stock options what are the tax consequences to Jan and ABC on the grant date, the exercise date and the date she sold the stock? Would it make any difference if she sold the stock 6 months after the exercise date? If so, how? Situation B If the stock options are nonqualified stock options what are the tax consequences to Jan and ABC on the grant date, the exercise date and the date she sold the stock? Would it make any difference if she sold the stock 6 months after the exercise date? If so, how? PROBLEM 3 For each of the following situations, determine whether or not the fringe benefit is includible in or excludible from gross income. Situation A Harold is the manager of a motel. As a condition of his employment, Harold is required to live in a room on the premises so that he will be there in case of emergencies. Harold considers this a fringe benefit, since he would otherwise be required to pay $550 per month rent. The room that Harold occupies normally rents for $55 per night, or $1,500 per month. On the average, 90% of the motel rooms are occupied. Situation B Ivan repairs power lines for Friendly Utilities Company. He is generally working on a power line during the lunch hour. He must eat when and where he can and still get his work done. He usually purchases something at a convenience store and eats in his truck. The utilities company reimburses Ivan for the cost of his meals. Situation C Employers of Jay's Bowling Alley, Inc. allow their employees to bowl without charge after the employee's working hours and when there are adequate idle bowling lanes. Kevin bowled 7 games during the month at no charge when the non-employee charge was $3.00 per game. PROBLEM 4 At the beginning of the year the Smiths purchased a vacation home in Myrtle Beach, South Carolina for $200,000. They paid $50,000 down and financed the remaining $150,000 with a 6% mortgage secured by the home. They used the home for personal purposes for 20 days and rented out the home for 200 days. They received $30,000 in rental income and incurred $500 of rental advertising expenses. In addition to interest of $9,000, they also incurred the following expenses: real estate taxes of $2,200; maintenance of $3650; utilities of $3,200; insurance of $2,500; and repairs of $1,500; depreciation of $6970. How is this property classified? How are their expenses allocated to the rental use under the Tax Court and IRS methods? What may they deduct on their Schedule A? PROBLEM 5 Ben is a business consultant who works out of his home. He has an office in one room of his home that he uses exclusively for his consulting work. During the year he made $15,000 in consulting income. His AGI for the year, before considering the consulting income, was $50,000. His business expenses, other than home office expenses, total $5,500. His expenses allocable to his home office are: real property taxes of $1,800; interest on the home mortgage of $4,875; operating expenses of the home of $1,000 and deprecation of $2,181. What is Ben's home office deduction for the year? What types and amounts carry over to next year? PROBLEM 6 Part 1: An individual taxpayer has the gains and losses shown below. The taxpayer also has $2,000 of 1231 lookback losses. What is the amount and character of the taxpayers net gain or loss for the year? Holding Period/Property 5 years/vacant land 3 years/business equipment 2 years/publicly traded stock 7 months/publicly traded stock Character of Gain or Loss 1231 gain 1245 gain Long-term capital gain Short-term capital loss Amount $8,000 4,200 1,490 (2,850) Part 2 : The chart below describes the 1231 assets sold by the Blue Company (a sole proprietorship) this year. Compute the gain or loss from each asset disposition and determine the nature of the gain or loss for each individual transaction and the net gain or loss for the Company for the year and the nature of that gain or loss. Assume there is a 1231 lookback loss of $3,000. Asset Stamping machine Factory building Tractor Overhead crane Acquired 3/23/09 2/19/06 5/1/09 11/2/01 Sold 8/18/2014 7/13/2014 11/11/2014 2/28/2014 Cost $40,000 80,000 52,000 74,000 Acc. Depr. $29,736 18,838 52,000 74,000 Sale Price $32,000 90,000 30,000 18,000