Question 1: Sybil gave her son Todd 1,000 shares of XYZ stock on January 16, 2007. The stock's high and low selling prices that day were $55 and $53. Sybil had purchased the stock in 2006 for $70 per share. At the beginning of 2008, Todd sold the shares for $62,000. Provide the details of both income and gift tax effects for these events.
Question 2: William has decided to purchase a large arpartment complex. He pays $100,000 cash, obtains a loan on the property for $500,000, and assumes the first mortgage balance of $250,000. He also gives the sellers $100,000 of marketable securities that he purchased three years ago for $125,000 and paid a finder's fee of $5,000, legal fees of $6,000, and transfer taxes of $12,000. What is William's acquisition basis for the building? Does he have any other tax consequences as a result of this purchase?