Refer to the facts in the preceding problem. Three years after the exchange, Neil sold the investment

Question:

Refer to the facts in the preceding problem. Three years after the exchange, Neil sold the investment asset for $1 million cash.
a. Compute Neil’s book gain and tax gain on sale assuming Neil acquired the investment asset in a taxable exchange.
b. Compute Neil’s book gain and tax gain on sale assuming Neil acquired the investment asset in a nontaxable exchange.