Use the following information to answer the next four questions.

Suppose Beets by Dray is formed as a corporation and Marshall is its sole shareholder. Beets by Dray is looking to make some long-term investments to fund its anticipated purchase of a new manufacturing facility. Marshall currently owns 1,000 shares of stock in his previous company Shady Corp, which he intends to sell in the near future. Marshall initially paid $80 a share for the stock but the stock is currently trading at $60 per share. Marshall needs cash for another investment and sells the stock to Beets by Dray for $60 per share.

9. What amount of loss will Marshall realize when he sells stock to Beets by Dray

10.What amount of loss will Marshall recognize when he sells stock to Beets by Dray

11.Lets assume that a few years after Beets by Dray purchased the stock from Marshall, Beets by Dray sells the Shady stock to an unrelated third party for $71,000. What gain or loss does Beets by Dray recognize

12.What gain or loss does Beets by Dray recognize if it can sell the Shady stock to an unrelated third party for $103,000 instead?

Use the following information to answer the next four questions.

Assume that one of Beets by Drays employees was involved in a traffic accident while driving a delivery van. The employee escaped without serious injury, but the van was totally destroyed. Before the accident, Beets by Drays delivery van had a FMV of $25,000 and an adjusted basis of $17,000. Beets by Dray received $25,000 insurance proceeds to cover the loss.

13. Assume a new delivery van is purchased for $30,000. What gain or loss does Beets by Dray recognize

14. Assume a new delivery van is purchased for $30,000. What is the basis in the replacement property

15. Assume a new delivery van is purchased for $19,000. What gain or loss does Beets by Dray recognize

16. Assume a new delivery van is purchased for $19,000. What is the basis in the replacement property