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*please provide steps to solution* 1. Luke sells land held for investment (AB $84,000) to his brother, Fred, for its FMV of $72,000. Later in
*please provide steps to solution*
1. Luke sells land held for investment (AB $84,000) to his brother, Fred, for its FMV of $72,000. Later in the year Fred sells the land to a friend. Which of the following statements is true? a. Luke can recognize a loss of $12,000 on the sale to Fred. b. If Fred sells the land for $80,000, he has a recognized loss of $4,000. c. If Fred sells the land for $70,000, he has a recognized loss of $14,000. d. If Fred sells the land for $90,000, he has a recognized gain of $6,000. e. None of the answers provided is correct. 2. Bob purchased a warehouse on May 5, 2021, for $1,400,000. Determine the cost recovery deduction for 2021. a. $31,818 b. $35,897 c. $22,436 d. $13,462 e. None of the answers provided is correctStep by Step Solution
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