Q.1 Barry sold depreciable property used in his business to Ken for $192,000 cash plus a bond redeemable in 5 years for $95,000, but currently trading on the NYSE for $98,000. The property cost Barry $310,000 plus $45,000 in capital improvements and had actual accumulated depreciation at the time of the sale of $225,000. The amount of accumulated depreciation he should have taken was $205,000.

Determine the amount of gain or loss recognized. Explain your conclusions including the various components of how you determined your answer.

Q.2 During 2019, Anna had the following transactions: Salary $90,000 Interest income on IBM bonds 3,000 Damages for physical personal injury (car accident) 115,000 Punitive damages (same car accident) 150,000 Stock dividends from Chevron Corp Stock with option to receive cash of $15,000 or stock valued at $22,000 (Anna opted to that the stock)

please explain thank you