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Problem - Pam owns a personal use boat that has a fair market value of $35,000 and an adjusted basis of $45,000. Pam's AGI is $100,000. Calculate the realized and recognized gain or loss if:
a. Pam sells the boat for $35,000.
b. Pam exchanges the boat for another boat worth $35,000.
c. The boat is stolen and Pam receives insurance proceeds of $35,000.
d. Would your answer in part (a) change if the fair market value and the selling price of the boat were $48,000? Explain.
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