Subject of the questions is accounting, and Federal income taxation based on Fundamentals of Federal Income taxation book (16,17 or 18 edition)

In 2005, Rich Moneybags (Rich) purchased a parcel of real property (Whiteacre) for $300,000, paying $30,000 in cash and the balance of purchase price by a $270,000 promissory note secured by a mortgage on Whiteacre. Rich died on Augest 17, 2016, at which time the fair market value of Whiteacre was $100,000. Richs will provided that Whiteacre was to go to Betty, subject to any debt on the property. Betty accepted the property from Richs estate (the estate having the same rights and obligations as Rich had), taking title to Whiteacre subject to the mortgage. The fair market value of Whiteacre on October 1, 2016, the date Whiteacre was transferred to Betty by Richs estate, was $130,000 and the balance of the mortgage was $250,000.

Discuss the income tax consequences, if any, to Richs estate and Betty resulting from the transfer of Whiteacre to Betty. Explain and support your answer, providing necessary supporting calculations.

Space for computations computations are required.