Answer:
Step-by-step explanation:
a. The computation of the adjusted basis for the land and building is shown below:
For land = $100,000
For building = $80,000
b. Gerald's basis for gain:
Gerald's adjusted basis for the land is $100,000
Gerald's adjusted basis for the building is $80,000
Gerald's basis for loss:
Gerald's adjusted basis for the land is $87,000 (fair value)
Gerald's adjusted basis for the building is $65,000 (fair value)
Since all the values are given in the question we simply put them in the correct items