Question

48. Comprehensive Problem. Larry Johnson, 45 and single, has the following income and deductions in 2022 . He is provided health insurance by his employer. Using the tax rate schedules rather than the tax tables, compute Larry's tax owed or refund due for 2022. In addition, Larry's car (value $=\$15,000$, $\mathrm{cost}=\$20,000)$ was stolen during the year, and the insurance reimbursement was only $\$7,000$. He also had $\$2,000$ of travel expenses related to his job that were not reimbursed and $\$3,000$ of federal income tax withheld from his salary. He elects to treat his dividends as net investment income, so they are not subject to the special long-term capital gains tax rates. 108. Fomprehensive Problem. Mr. Trent tuansferred three apartment buildings to a new corporation in exchange for all its stock. The facts pertaining to the buildings were: a. What gains are realized and recognized on the transfer of each building? What is the character of the gains? b. What is the corporation's basis in each building? c. What is Mr. Trent's basis in his stock?