1) A buys a bond for $1,500 and it has a redemption amount of $1,000. A holds the bond for 2 years and amortizes $200 of the premium. A exchanges the bond for $1,400 of XYZ stock. What is As basis in the bond at the time of the exchange? How much is As amount realized? How much gain or loss did A recognize on the exchange?

2) A buys 100 shares of ABC on five different occasions. The purchases were done in the following order and for the following amounts per share.

1 105

2- 108

4- 116

5 100

A sells 300 shares for $30,150. If A gave no instructions to her broker what is As gain or loss on the transaction? If A instructed her broker to sell her shares with the highest basis what would her gain or loss be?

3)A gives a gift of property to B. As basis in the property was $500,000 and its fair market value on the date of the gift was $300,000. What is Bs gain or loss on the disposition of the gift if B sells the property for $100,000? 600,000? $400,000?

4) A owns 100 shares of ABC stock with a basis of $10,000. On February 1, 2016 A sells the shares for $8,000. On February 28, 2016 A buys 100 shares of ABC stock for $7,000. What was As gain/loss on the February 1 sale? What is As basis in the shares acquired on February 28?

5) A acquires a house for $400,000 and incurs $7,500 of various closing fees. A also paid $3,000 of the sellers real estate taxes which was part of the $400,000 purchase price. While A owned the house A built a swimming pool for a cost of $32,000 but deducted $15,000 as a medical expense, A deducted $9,000 of expenses as a home office deduction of which $4,500 was for depreciation. A sells his home to B on October 1, 2016. A receives $600,000 in cash and B assumes As mortgage of $300,000. B will pay the entire years real estate tax of $12,000 in addition to the $300,000 purchase price. The brokers commission on the sale is $30,000. B is obtaining financing and to help B, A will pay points to the lender of $10,000.What is As basis in the house, what is the amount realized by A on the sale and what is As gain or loss with respect to the house?