Five years ago, Brian and his brother Boyd formed Stewart Corp., a golf apparel manufacturing corporation. At that time, Brian contributed $300,000 to the corporation in exchange for 50% of its stock. During the current year, Brian needed some cash to purchase a golf course so he sold a third of his interest in Stewart Corp. for $85,000. He also sold stock in the following companies for the amounts indicated:

During the year Brian hired a collection agency to collect a $14,000 loan he made to an old friend, which was due in full on January 1 of the current year. The agency found no trace of his friend. Also during the year, BTR Corporation, in which he owns stock, went bankrupt. His investment was worth $94,000 on January 1, he purchased it six years ago for $100,000, and he expects to receive only $8,000 in redemption of his stock. Finally, Brian€™s salary for the year was $114,000 for his work as an associate professor.
a. What are the net gains and losses from the above items and their character?
b. What is Brian€™s AGI for the year assuming he has no other items of income or deduction?

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Corporation Sales Proceeds Adjusted BasisWhen Acquired IBM S15,000 S10,000 52 months ago 18 months ago 7 months ago 4 months ago Microsoft 25,000 45,000 Tidal Radio 32,000 12,000 Wavetable 20,000 26,000