More Poblem Set Module 1 Problem Set Instructions Unless otherwise indicated, assume all taxpayers are calendar year, cash-method taxpayers. Question 1 0.1 pts Mr. James purchased a vacation house in Los Angeles on July 1, 2017. The purchase price was $1,000,000, and Mr. James spent $10,000 on capital additions. As of January 1, 2019, the house was worth $1,200,000. Mr. James was not entitled to depreciate the house as it was a personal use asset. Assume Mr. James still owned the house as of December 31, 2019. On December 31, 2019, the house was valued at $1,300,000. For tax purposes, how much income did Mr. James realize in 2019? Question 2 0.1 pts Mr. James purchased a vacation house in Los Angeles on July 1, 2017. The purchase price was $1,000,000, and Mr. James spent $10,000 on capital additions. As of January 1, 2019, the house was worth $1,200,000. Mr. James was not entitled to depreciate the house as it was a personal use asset. For the purposes of this question, assume that Mr. James sold the house on December 31, 2019 for $1,300,000. For tax purposes, how much income did Mr. James realize in 2019