10. LO.1, 2, 4, 6 Liam owns a personal use boat that has a fair market value of $35,000 and an adjusted basis of $45,000. Liam’s AGI is $100,000. Calculate the realized and recognized gain or loss if:

a. Liam sells the boat for $35,000.

b. Liam exchanges the boat for another boat worth $35,000.

c. The boat is stolen and Liam receives insurance proceeds of $35,000.

d. Would your answer in part

(a) change if the fair market value and the selling price of the boat were $48,000