In 20X5 Scarlet exchanged an apartment complex in Arizona (purchased in 20X1; cost $600,000; AB $ 400,000) for an apartment complex in Texas (FMV $900,000). In 20X9, after deducting $70,000 of depreciation, Scarlet sells the apartment complex for $980,000. What are the tax consequences of both transactions (the exchange and the sale)?

a.) Assume Scarlet is an Individual

b.) Assume Scarlet is a Corporation.