THANK YOU. PLEASE EXPLAIN IF POSSIBLE

Q1:

Jason and his brother, Andy, agreed to exchange rental properties on May 14, 2021. Jason transferred ownership of his rental property to Andy immediately after their agreement.

What is the last day that Andy can transfer his property to Jason in order for Jason to be able to defer the gain on this exchange under the like-kind exchange rules?

November 10, 2021

December 31, 2021

April 18, 2022

May 13, 2022

Q2

Ladonna and Jesse are each a 50% general partner in Couture Clothiers. At the beginning of 2022, Ladonna had an outside basis of $55,000. On February 3, 2022, the partnership incurred $30,000 in recourse debt to finance the purchase of some new industrial sewing machines. What is Ladonna's outside basis immediately after this purchase?

$40,000

$55,000

$70,000

$85,000