For each of the following independent transactions, calculate the recognized gain or loss to the seller and

Question:

For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer.
a. Bonnie sells Parchment, Inc. stock (adjusted basis $17,000) to Phillip, her brother, for its fair market value of $12,000.
b. Amos sells land (adjusted basis $85,000) to his nephew, Boyd, for its fair market value of $70,000.
c. Susan sells a tax-exempt bond (adjusted basis $20,000) to her wholly owned for its fair market value of $19,000.
d. Ron sells a business truck (adjusted basis $20,000) that he uses in his sole proprietor ship to his cousin, Agnes, for its fair market value of $18,500.
e. Martha sells her interest (adjusted basis $175,000) in Pearl to her adult daughter, Kim, for $220,000.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...