LO.1, 2 Jenny purchased timber on a 100-acre tract of land in South Dakota in March 2015 for $100,000. On January 1, 2017, the timber had a fair market value of $145,000. Because of careless cutting in November 2017, when the fair mar- ket value was $158,000, the wood was sold on January 30, 2018, for $98,000. a. What gain (loss) was recognized in 2016, 2017, and 2018 if Jenny elected to treat the cutting as a sale? b. What was the nature of the gains losses) in part (a? wiys dle er dlne I7y o If the timber was worth only $58,000 on January 1, 2017, was cut in November when it was worth $33,000, and was sold in December for $59,000, how would the answers to parts (a) and (b) change? d