1. Barbara R. owns two lots of "JERRIE" stock. The first lot of 100 shares was purchased 15 years ago for
$1,000. The second lot of 100 shares was purchased eleven years ago for $13,000. She wants to sell 75 shares and anticipates receiving $15,375. If she fails to use the specific identification method to her advantage, how much of the gain must she recognize?
2. Amy sold 600 shares of RAMANZEE, Inc. at a loss of $12,500 on June 15, 2018. On July 12, 2018 she purchased another 850 shares of RAMANZEE for $16,700. In Amy's situation:
a) How much of the losses from selling 600 shares of RAMANZEE, Inc. must she recognize in 2018?
b) What is her basis in the 850 shares of RAMANZEE purchased on July 12, 2018?
3. Jenny has an office building. She has an adjusted basis in the building of $100,000. Her brother, a doctor, owns an office building in California and agrees to trade buildings with her. The value of the office building in California is $300,000. If the exchange takes place this year,
a) How much of the gain must Jenny recognize this year because of the exchange?
b) What is Jenny's basis in the office building in California?
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