LO.4, 5, 6 Ted and Marge Dean are married and have always lived in a community property state. Ted (age 92) suffers from numerous disorders and is frequently ill, while Marge (age 70) is in good health. The Deans currently need $500,000 to meet living expenses, make debt payments, and pay Ted's backlog of medical expenses. They are willing to sell any one of the following assets:

	Adjusted Basis	Fair Market Value
Wren Corporation stock	$200,000	$500,000
Gull Corporation stock	600,000	500,000
Unimproved land	650,000	500,000

The stock investments are part of the Deans' community property, while the land is Ted's separate property that he inherited from his mother. If the land is not sold, Ted is considering making a gift of it to Marge.

b. Prepare a memo on this matter for your firm's client files.