Please answer problem 1 and problem 2 with detail explanation and excel calculations for better understanding

Name: ACCT 4230 Chapter 5 Date: Work the problems and enter your solutions on the blanks provided. Use the colored areas to show your work. Amounts should be properly labeled and excel formulas should be used as applicable. You may add or delete rows as needed. Problem 1: Mark received a gift of 500 shares of Jackson Corporation stock from his Aunt Betsy on June 30, 2016. On the date of the gift, the fair market value of the stock was $86,000. Aunt Betsy had purchased the stock in 2001 for $44,000. The gift tax paid by Aunt Betsy in connection with this gift was $12,000. This is the only gift made by Aunt Betsy to Mark during 2016. a) What is Mark's basis in the stock? purchase price of the stock 44,000 44,000*300/500 26,400 b) If Mark sells 300 shares of the stock on November 15, 2016 for $33,000, what is the amount and character of the gain or loss that will be included in Mark's adjusted gross income for 2016? 6,600 selling price of the stock less buying price of te stock gain/profit on sale included in gross income 33,000 26,400 6,600 Work the problem and enter your solutions on the blanks provided. Use the colored areas to show your work. Amounts should be properly labeled and excel formulas should be used as applicable. You may add or delete rows as needed. Problem 2: a) Jeffrey received land as a gift from his grandmother. At the time of the gift, the land had a fair market value of $100,000 and an adjusted basis to Jeffrey's grandmother of $80,000. There were no gift taxes due on the gift. After holding the property for 13 months, Jeffrey sold the property for $110,000. What was Jeffrey's gain or loss on the disposition of the property? Characterize the gain or loss as short-term or long-term. b) Jeffrey received land as a gift from his grandmother. At the time of the gift, the land had a fair market value of $80,000 and an adjusted basis to Jeffrey's grandmother of $100,000. There were no gift taxes due on the gift. After holding the property for 13 months, Jeffrey sold the property for $90,000. What was Jeffrey's gain or loss on the disposition of the property? Characterize the gain or loss as short-term or long-term. Work the problem and enter your solutions on the blanks provided. Use the colored areas to show your work. Amounts should be properly labeled and excel formulas should be used as applicable. You may add or delete rows as needed. Problem 3: Janine purchased a personal residence in 2006 for $300,000. In 2012, when the property's fair market value was $275,000, she converted the property to rental property. Assume that 20% of the property's value should be allocated to the land. a) What is the basis of the house for depreciation? b) Janine rents the property for four years, claiming a total of $32,000 of accumulated depreciation. If she sells the property after four years for $310,000, what is the gain on the sale of the land and the gain on the sale of the building. 20% of the property value is still allocable to the land. Gain - land Gain - building Name: ACCT 4230 Chapter 5 Date: Work the problems and enter your solutions on the blanks provided. Use the colored areas to show your work. Amounts should be properly labeled and excel formulas should be used as applicable. You may add or delete rows as needed. Problem 1: Mark received a gift of 500 shares of Jackson Corporation stock from his Aunt Betsy on June 30, 2016. On the date of the gift, the fair market value of the stock was $86,000. Aunt Betsy had purchased the stock in 2001 for $44,000. The gift tax paid by Aunt Betsy in connection with this gift was $12,000. This is the only gift made by Aunt Betsy to Mark during 2016. a) What is Mark's basis in the stock? purchase price of the stock 44,000 44,000*300/500 26,400 b) If Mark sells 300 shares of the stock on November 15, 2016 for $33,000, what is the amount and character of the gain or loss that will be included in Mark's adjusted gross income for 2016? 6,600 selling price of the stock less buying price of te stock gain/profit on sale included in gross income 33,000 26,400 6,600 Work the problem and enter your solutions on the blanks provided. Use the colored areas to show your work. Amounts should be properly labeled and excel formulas should be used as applicable. You may add or delete rows as needed. Problem 2: a) Jeffrey received land as a gift from his grandmother. At the time of the gift, the land had a fair market value of $100,000 and an adjusted basis to Jeffrey's grandmother of $80,000. There were no gift taxes due on the gift. After holding the property for 13 months, Jeffrey sold the property for $110,000. What was Jeffrey's gain or loss on the disposition of the property? Characterize the gain or loss as short-term or long-term. b) Jeffrey received land as a gift from his grandmother. At the time of the gift, the land had a fair market value of $80,000 and an adjusted basis to Jeffrey's grandmother of $100,000. There were no gift taxes due on the gift. After holding the property for 13 months, Jeffrey sold the property for $90,000. What was Jeffrey's gain or loss on the disposition of the property? Characterize the gain or loss as short-term or long-term. Work the problem and enter your solutions on the blanks provided. Use the colored areas to show your work. Amounts should be properly labeled and excel formulas should be used as applicable. You may add or delete rows as needed. Problem 3: Janine purchased a personal residence in 2006 for $300,000. In 2012, when the property's fair market value was $275,000, she converted the property to rental property. Assume that 20% of the property's value should be allocated to the land. a) What is the basis of the house for depreciation? b) Janine rents the property for four years, claiming a total of $32,000 of accumulated depreciation. If she sells the property after four years for $310,000, what is the gain on the sale of the land and the gain on the sale of the building. 20% of the property value is still allocable to the land. Gain - land Gain - building