Gain/Lossa. Bonnie sells Parchment, Inc. stock (adjusted basis $17,000) to Phillip, her brother, for its fair market value of $12,000.
b. Amos sells land (adjusted basis $85,000) to his nephew, Boyd, for its fair market value of $70,000.
c. Susan sells a tax-exempt bond (adjusted basis $20,000) to her wholly owned corporation for its fair market value of $19,000.
d. Ron sells a business truck (adjusted basis $20,000) that he uses in his sole proprietorship to his cousin, Agnes, for its fair market value of $18,500.
e. Martha sells her partnership interest (adjusted basis $175,000) in Pearl Partnership to her adult daughter, Kim, for $220,000.
Your answer:Problem 6-44 (LO. 3)Alex, who is single, conducts an activity in 2015 that is appropriately classified as a hobby. The activity produces the following revenues and expenses:Revenue$18,000Property taxes3,000Materials and supplies4,500Utilities2,000Advertising5,000Insurance750Depreciation4,000Without regard to this activity, Alex's AGI is $42,000 and his personal exemption is $4,000.