Question: Mark Vandal is a widower with two children, Tom and Jane. Mark owns a lake cabin. Used as a second home, which he and his

Mark Vandal is a widower with two children, Tom and Jane. Mark owns a lake cabin. Used as a second home, which he and his wife, Mary, purchased (as community property) in 1975 for 20,000. The cabin has a current (as of September 30, 2014) market value of 600,000. In August 2014, Jane asked Mark to sell the cabin to her (Jane) for $500,000. Mark responded by saying that he would transfer the cabin to Jane for $100,000, if Jane would pay $300,000. The value of the cabin at Marys death in 1998 was $300,000 and its Value (@150,000) was include in her estate. Marys interest In the cabin was devised to Mark. Mark and mary were married in 1972 and at all times lived in Idaho.What was marks gain or loss, if any, at the time the lake cabin was transferred to Jane?

Gain (loss) $_______. Character of gain or loss________

Explain and support your answer, providing necessary supporting calculations. Computations only will not be sufficient. Show your computations-required.

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