David’s basis in the Jimsoo Partnership is $62,000. In a proportionate liquidating distribution, David receives cash of $8,800 and two capital assets:

(1) Land A with a fair market value of $23,600 and a basis to Jimsoo of $18,700, and
(2) Land B with a fair market value of $11,350 and a basis to Jimsoo of $18,700. Jimsoo has no liabilities.

If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David (amount and character of gain or loss)?

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.