I. The following information relates to the capital assets owned by White: 1. 2. 3. 4. He received from his mother a bequest of common stock in the Blue Company with a fair market value of $75,000 and an adjusted basis of $81,000. The fair market value of the stock on the alternative valuation date was $73,000. The executor of the estate elected to use the alternative valuation for estate tax purposes. He sold a cabin with a fair market value of $125,000 and an adjusted basis of $90,000 to his son for $115,000. He received from his uncle a gift of a painting with a fair market value of $60,000 and an adjusted basis of $50,000. He exchanged $20,000 in cash and common stock in the Green Company with an adjusted basis of $23,000 for land that had a fair market value of $63,000. The land was subject to a $12,000 liability. The liability was assumed by White. He received an antique car with a fair market value of $48,000 and an adjusted basis of $52,000 from his ex-wife in a divorce settlement. He sold 250 shares of common stock in the Brown Company for $10,500 on June 15, 2020. He originally paid $11,500 for the 250 shares of common stock in the Brown Company. On June 20, 2020 he purchased 175 shares of common stock in the Brown Company for $6,825. 5. 6. Required: 1. Determine the basis of the common stock in the Blue Company, the painting, the land, the antique car, and the common stock in the Brown Company. 2. Determine the amount of gain or loss to be recognized on White's 2020 tax return from the sale of the cabin, the exchange of the common stock in the Green Company, and the sale of the common stock in the Brown Company. 3. Determine the basis of the cabin to White's son. 4. Assuming that White sold the painting during 2022 for $57,000, determine the amount of gain or loss to be recognized on White's 2022 tax return. I. The following information relates to the capital assets owned by White: 1. 2. 3. 4. He received from his mother a bequest of common stock in the Blue Company with a fair market value of $75,000 and an adjusted basis of $81,000. The fair market value of the stock on the alternative valuation date was $73,000. The executor of the estate elected to use the alternative valuation for estate tax purposes. He sold a cabin with a fair market value of $125,000 and an adjusted basis of $90,000 to his son for $115,000. He received from his uncle a gift of a painting with a fair market value of $60,000 and an adjusted basis of $50,000. He exchanged $20,000 in cash and common stock in the Green Company with an adjusted basis of $23,000 for land that had a fair market value of $63,000. The land was subject to a $12,000 liability. The liability was assumed by White. He received an antique car with a fair market value of $48,000 and an adjusted basis of $52,000 from his ex-wife in a divorce settlement. He sold 250 shares of common stock in the Brown Company for $10,500 on June 15, 2020. He originally paid $11,500 for the 250 shares of common stock in the Brown Company. On June 20, 2020 he purchased 175 shares of common stock in the Brown Company for $6,825. 5. 6. Required: 1. Determine the basis of the common stock in the Blue Company, the painting, the land, the antique car, and the common stock in the Brown Company. 2. Determine the amount of gain or loss to be recognized on White's 2020 tax return from the sale of the cabin, the exchange of the common stock in the Green Company, and the sale of the common stock in the Brown Company. 3. Determine the basis of the cabin to White's son. 4. Assuming that White sold the painting during 2022 for $57,000, determine the amount of gain or loss to be recognized on White's 2022 tax return