On June $1,$ Mario entered into a contract to sell real estate for $$1,000,000($adjusted basis

$$200,000).$ The sale was conditioned on a rezoning of the property for commercial use. A

$$50,000$ deposit placed in escrow by the purchaser was refundable in the event the rezoning

was not accomplished.

Mario died unexpectedly on November $1.$ After considerable controversy, the rezoning

application was approved on November $10,$ and two days later, $$950,000$ was paid to Mario$$s

estate in full satisfaction of the purchase price. Discuss the estate and income tax

consequences of this scenario, assuming that the sale of the real estate occurred:

a$.$ After Mario$$s death.

b$.$ Before Mario$$s death.

When do you think the sale occurred? Why?

Partial list of research aids:

$691$ and $1014$