HOME WORK EXERCISES WILL FOLLOW Here are five short problems assigned to you as Home Work Assignments that have to be completed Individually and submitted by E-mail in lieu of MOODLE ON-LINE TEACHING. 1. Morris Goodman has a personal residence with an adjusted basis of $50,000 and a fair market value of $60,000. Mr. Goodman's property was condemned by the State of Louisiana Project Committee. Goodman received a compensation by the State of $45,000 Required: What is Goodman's deductible loss, if any? Show your computation and your rationale for your decision. (10 Points) 2. During the current year, Wallace traded a tractor used in his construction business for another tractor for the same use. On the date of the trade, the old tractor had an adjusted basis of $4000 and a fair market value of $4,400. Mr. Wallace received in exchange $600 in cash and a similar tractor with a fair market value of $3,800.(10 Points) Required: What should Wallace report as a gain on the exchange in his income tax return? Show computation. 3. The following information pertains to the acquisition of a six-wheeler truck by Mr. Scott who is a self-employed contractor. (12 Points) Cost of the original truck traded in $20,000 Fair market value of original truck at a trade-in date 4,000 List price of new truck $25,000 Trade in allowance for old truck Business use of both trucks is 100% 6,000 Required: Compute the basis for the new truck