Chapter $37,$ G$\mathrm{.}1$

Cindy transferred farmland $($that she had been farming$)$ to Bobby. The farmland had a fair market value of $$500,000$ and basis of $$200,000.$ Bobby transferred a parking lot $($used in his business$)$ to Cindy. The lot had a fair market value of$$500,000$ and basis of $$300,000.$ Cindy will use the parking lot in her business, and Bobby will farm the farmland. With respect to Cindy:

a$.$ How much gain realized does she have from disposition of the farmland.

b$.$ How much gain recognized does she have?

c$.$ What is her basis in the parking lot?

With respect to Bobby:

d$.$ How much gain realized does he have from disposition of the parking lot?

e$.$ How much gain recognized does he have?

f$.$ What is his basis in the farmland?

Chapter $37,$ G$\mathrm{.}3$

Marsha transferred farmland $($that she had been farming$)$ to Gregg. The farmland had a fair market value of $$300,000$ and basis of $$200,000.$ Gregg transferred a vacant lot $($held for investment purposes$)$ and $$25,000$ to Marsha. The lot had a fair market value of $$275,000$ and basis of $$200,000.$ Marsha will hold the vacant lot as an investment, and Gregg will farm the farmland. With respect to Marsha:

a$.$ How much gain realized does she have from disposition of the farmland?

b$.$ How much gain recognized does she have?

c$.$ What is her basis in the lot?

With respect to Gregg:

d$.$ How much gain realized does he have from disposition of the vacant lot?

e$.$ How much gain recognized does he have?

f$.$ What is his basis in the farmland?