Travis inherits a hotel from his grandmother, Luciana, on February 11 of the current year. Luciana bought the hotel for $730,000 three years ago. Luciana deducted $27,000 of cost recovery on the hotel before her death. The fair market of the hotel in February is $720,000 (Assume that the alternative valuation date is not used.) Required: What is Traviss adjusted basis in the hotel? If the fair market value of the hotel at the time of Lucianas death was $650,000, what is Traviss basis? Compare and contrast different ways in which a taxpayer triggers a realization event by disposing of an asset. When a taxpayer sells an asset, what is the difference between realized and recognized gain or loss on the sale? Discuss the reasons why individuals generally prefer capital gains over ordinary gains. Explain why corporate taxpayers might prefer capital gains over ordinary gains