Rod Clooney purchases Agnes Mitchell€™s sole proprietorship for $990,000 on
August 15, 2017. The assets of the business are as follows:

a. Calculate Agnes€™s realized and recognized gain.
b. Determine Rod€™s basis for each of the assets.
c. Write a letter to Rod informing him of the tax consequences of the purchase.
His address is 300 Riverview Drive, Delaware, OH 43015.

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Agnes's Adjusted Asset Basis FMV $ 70,000 $ 70,000 Accounts receivable Inventory 90,000 100,000 Equipment 150,000 160,000 Furniture and fixtures 95,000 130,000 Building 190,000 250,000 Land 75,000 25,000 $620,000 $785,000 Total