1. Indy was leasing an apartment from Paprika, Inc. Paprika paid Indy $1,000 to cancel the lease and move out so that Paprika could demolish the building. As a result: 
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3. a.Indy has no capital gain or loss. 
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5. b.Indy has a $1,000 capital loss. 
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7. c.Indy has a $1,000 capital gain. 
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9. d.Paprika has a $1,000 capital gain. 
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11. e.Paprika has a $1,000 capital loss.

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