Sanchez Company sold land for $100,000 to Belita Sanchez, who owns 60 percent of the outstanding stock of Sanchez. The company's adjusted basis in the land is $120,000.
a. Compute the company's realized and recognized gain or loss on the sale of the land.
b. What is Belita's adjusted basis in the land?
c. If Belita sold the land for $90,000 two years after she purchased it, compute her realized and recognized gain or loss.
d. If Belita sold the land of $105,000 two years after she purchased it, compute her realized and recognized gain or loss.
e. If Belita sold the land for $145,000 two years after she purchased it, compute her realized and recognized gain or loss.