Lisa sells business property with an adjusted basis of $130,000 to her son, alfred, for the fair market value of $100,000.
a. what is lisa’s realized and recognized gain or loss?
b. what is alfred’s recognized gain or loss if he subsequently sells the property for $138,000? for $80,000?

Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?