QUESTION 1 Rafael sold an asset to Jamal Rafael received $20,000 of cash, a parcel of land worth $50,000, and marketable securities of $10,000. Rafael also paid a commission of $7,000 on the transaction. What is Rafael's amount realized on the sale? 254 QUESTION 2 Hannah Tywin owns 100 shares of MM Inc. stock. She sells the stock on December 11 for $26 per share. She received the stock as a gift from her Aunt Pam on March 20 of this year when the fair market value of the stock was $18 per share. Aunt Pam originally purchased the stock seven years ago at a price of $12 per share. What is the amount of Hannah's recognized gain or loss on the stock? 125 QUESTION 3 In year 0. Longworth Partnership purchased a machine for $40,000 to use in its business in year 3, Longworth sold the machine for $34,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,000. What is the amount of the $1231 gain (loss) Longworth will recognize on the sale? 6789