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Today, I'm going to discuss the taxation accounting business 585 offer by Calmette in spring 2011. This is the whole fall on chapter 7 and chapter 8. My name is Darren Tay and the cause and homework were assigned by Professor Samuel Tong today. Oh, who is from Chapter seven? Question 37: Eight years ago, Daniel bought some qualified small business stock for two million dollars. In the current year, she sells that stock for 13 million dollars. The first question is how much and what kind of gain or loss does he have? The answer is according to Section 1202, gains on qualified small business stock disposed of qualifying stock that has been held for more than five years. So in this case, Daniel bought this qualified small business stock eight years ago. 30 million minus 2 million will have a net gain, but this 11 million is less than 10 times the adjustable bases. Therefore, according to Section 1202 exclusion, 50 percent of the gain is excluded, and the other 50 percent is considered as long-term capital gain. So this 5.5 million, at a 28 percent tax rate, becomes 1.54 million dollars. Continuing with question 37b: How would your answer change if Dennis sold the stock for 25 million dollars? In this case, if Dennis sold the stock for 25 million dollars, he has a gain of 23 million. In other words, he has more than 10 times the adjustable basis and 10 million qualifies for the section 1202 exclusion. Because of the tax benefit from the exclusion, the included gain is taxable at a 28 percent capital gain rate. Based on this, 30 million after the 28 percent tax rate will be 3.64 million dollars. Moving on to question 35 from chapter eight: Wilbur transfers property valued...