1. M. Forte exchanged realty valued at $100,500 for L. Briggs realty valued at $80,500. M. Forte's Basis for his property was $70,600 L. Briggs basis for his property was $70,900. Additionally, Briggs paid Forte $20,000. Determine the realized and recognized gain for Forte and determine the basis of Forte's new property.

2-Using the facts from number 1, determine the realized and recognized gain for Brigg and determine the basis of Briggs' new equipment.

3-P. Kane, a single taxpayer, bought a condo in Chicago for $500,000 and lived in it for 5 years. He is interested in knowing the tax ramifications if he would to sell his condo. Determine the realized and recognized gain/loss if Kane sold the machinery for (a) $690,300, (b) $800,750, and (c) $300,120.

4-Mia B. is a single taxpayer and owns two rental properties with an aggregate loss of $50,000. Mia B actively participates in both rental properties. Mia's modified adjusted gross income for the year is $95,000. What is the maximum amount of loss Mia's is allowed to deduct for the current year? Would you answer change if her MAGI was $170,000?