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

1(a)- On June 1, 2016, Grandmother offered to make an inter vivos transfer of her lake cabin to her Granddaughter, Jane, on condition that Jane would pay her brother, Tom one-half (1/2) of the value of the cabin (as of June 1, 2016). The fair market value of the cabin on June 1, 2016 was $300,000. On June 15, 2016, Jane accepted the transfer of the cabin from Grandmother and paid her brother, Tom $150,000. Grandmother and Grandfather (who were husband and wife) purchased the cabin in 1964 for $20,000, paying $2,000 in cash and the $18,000 balance by a loan secured by the cabin (mortgage), which was paid before Grandfathers death. No note was signed. The value of the cabin at Grandfathers death, when he died in 2005, was $90,000, and as required by I.R.C. Section 2031, of the value of the cabin ($45,000) was included in Grandfathers estate for estate tax purposes. Grandfathers will provided that upon his death, his interest in the cabin (value of $45,000) was to go to Grandmother (Grandmother already owned 1/2 of the cabin before his death). Therefore, Grandmother owned 100 percent of the cabin at the time of the transfer to Jane. Grandfather and Grandmother, at all times lived in Idaho.

What are the income tax consequences, if any, to Grandmother at the time of the offer and/or the transfer of the lake cabin to Jane?

Gain is:___________ Basis is:___________

. Explain and support your answer, providing necessary supporting calculations.

Space for computations computations are required.

1(b) Applying the same facts as in Question 1(a) hereinabove in that on June 15, 2016, Jane accepted the inter vivos transfer of the cabin and paid her brother, Tom $150,000, as provided in Grandmothers offer.

What was Janes gain and loss, if any, an her basis in the cabin, at the time she acquired the lake cabin?

Gain is: _________ Basis is: _____________

Explain and support your answer, providing necessary supporting calculations.

Space for computations

1(c) Applying the same facts as in Question 1(a) hereinabove in that on Tom received from Jane, the$150,000, as provided in Grandmothers offer to Jane.

What was Toms gain or loss, if any, at the time he received the $150,000 from Jane? $___________

Explain and support your answer, providing necessary supporting calculations.

Space for computations