Please answer all parts of the question( 1-4 ), type your response and provide an explanation

1) Albeit is considering two options for selling land for which he ha 811 adjusted basis of $45,000

and on which there is a mortgage of $90,000. Under the first option, Albeit will sell the land for

$1 10,000 with a stipulation in d1e sales contract that he liquidate the mortgage before the sale is

complete. Under the second option, Albert will sell the land for $20,000 and the buyer will

assume the mortgage. Calculate Albert's recognized gain under both options.

2) Grace Gunther purchased King Corporation stock on March 18, 2017, and on December

23, 2017, she gave the stock to her son, Jack. She paid $12,000 for the stock and the fair

market value at the time of the gin was $13,000. On October 14, 2018, Jack sold the

stock for $14,500. (a.) Does Jack have short-term or long-term gain or loss and how

much? (b.) If the value of the stock at the time of the gin was $10,500, and .lack sold it on

October 14, 2018, for $9,500. does he have short-term or long-term gain or loss and how

much?

3) Porter exchanges land used in his business in a like-kind exchange. The property exchanged is as

follows:

Property Surrendered ProDrIV Received

Adi. Basis FMV Adi, Basis FMV

Land $50,000 $60,000 $28,000 $30,000

Cash s 5,000 s 5.000

Liability on equipment $25,000 s2s,000

a. What is Porters wcognizcd gain or loss"

b. What is Porter's basis for the assets he received?

4) On January 5, 2008, Bill sells his principal residence with an adjusted basis of $65,000 for

$175,000. He has owned and occupied the residence for 22 years. He pays $10,500 in

commissions and Sl ,200 in legal fees in connection with the sale. One month before the sale, Bill

painted the house at a cost of$l,500 and repaired various items at a cost of $2,500. On October

IS, 2008, Bill purchases a new home for Sl 25,000. On November 15, 2009, he pays $25,000 for

completion of a new room on the new house, and on January 14, 2010, he pays $l 5,000 for the

construction of a pool at the new house. What is the Bill's recognized gain on the sale of his old

principal residence and what is the basis for the new residence?

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Show transcribed image textAlbert is considering two options for selling land for which he has an adjusted basis of $45,000 and on which there is a mortgage of $90,000. Under the first option, Albert will sell the land for $110,000 with a stipulation in the sales contract that he liquidate the mortgage before the sale is complete. Under the second option, Albert will sell the land for $20,000 and the buyer will assume the mortgage. Calculate Albert's recognized gain under both options. 1) 2) Grace Gunther purchased King Corporation stock on March 18, 2017, and on December 23, 2017, she gave the stock to her son, Jack. She paid $12,000 for the stock and the fair market value at the time of the gift was $13,000. On October 14, 2018, Jack sold the stock for $14,500. (a.) Does Jack have short-term or long-term gain or loss and how much? (b.) If the value of the stock at the time of the gift was $10,500, and Jack sold it on October 14, 2018, for $9,500, does he have short-term or long-term gain or loss and how much? 3) Porter exchanges land used in his business in a like-kind exchange. The property exchanged is as follows: Surrendered Land Cash Liability on equipment Adj. Basis $50,000 FMV $60,000 sis $28,000 5,000 FMV $30,000 $ 5,000 $25,000 $25,000 a. What is Porter's recognized gain or loss? b. What is Porter's basis for the assets he received? 4) On January 5, 2008, Bill sells his principal residence with an adjusted basis of $65,000 for $175,000. He has owned and occupied the residence for 22 years. He pays $10,500 in commissions and $1,200 in legal fees in connection with the sale. One month before the sale, Bill painted the house at a cost of $1,500 and repaired various items at a cost of $2,500. On October 15, 2008, Bill purchases a new home for $125,000. On November 15, 2009, he pays $25,000 for completion of a new room on the new house, and on January 14, 2010, he pays $15,000 for the construction of a pool at the new house. What is the Bill's recognized gain on the sale of his olod principal residence and what is the basis for the new residence?