1. Jimmy had investment land that he purchased in 1995 for $85,000. Two years ago, when the land was contributed to the FUN partnership, the FMV was $40,000. The land is inventory in the lands of the FUN partnership. The partnership then sells the land in the current year for $36,000.

a. What is the partnerships recognized loss.

2. Clifford is an 80 year old wealthy business man who will probably live another 10 years. He has vast wealth including a 10 million home in Florida and $5 million worth of Apple common stock. He has a loving family including 3 children and 5 grandchildren and he is very much involved with with his charity work with the American Red Cross.

a. What estate planning techniques would you recommend to him?