In solving the below problems, please make use of the I.R.C. 1031 Computation Worksheet as provided to you in class (and online on our class website). 1. Assume Taxpayer exchanges property worth $50,000, with an adjusted basis of $20,000, for like-kind property worth $40,000 and cash of $10,000. Explain what is Taxpayer's amount realized Explain what is Taxpayer's gain realized. Explain Taxpayer's gain recognized. Explain Taxpayer's basis in the new property. 2. Assume that Taxpayer exchanges land worth $50,000 with an adjusted basis of $20,000 and a computer worth $5,000 and an adjusted basis of $10,000 for a like-kind parcel of real estate worth $55,000. Explain what is Taxpayer's amount realized. Explain what is Taxpayer's gain realized. Explain Taxpayer's gain recognized. Explain Taxpayer's basis in the new property 3. Elizabeth owns land worth $500,000 which is subject to a mortgage of $100,000. Elizabeth's adjusted basis in the land is $100,000. Elizabeth exchanges the land for another tract of land owned by Caroline. Caroline assumes Elizabeth's mortgage. Caroline's land is worth $400,000 and Caroline has a $200,000 basis in the land. Assume that the transaction qualifies as a like kind exchange from the standpoint of both Elizabeth and Caroline. Explain what is Elizabeth's amount realized. Explain what is Elizabeth's gain realized Explain Elizabeth's gain recognized. Explain Elizabeth's basis in the new property. Explain what is Caroline's amount realized. Explain what is Caroline's gain realized. Explain Caroline's gain recognized. Explain Caroline's basis in the new property