Jerry and sally were divorced under an agreement executed july 1, 2018. the terms of the agreement provide that jerry will transfer to sally his interest in a rental house worth $250,000 with a tax basis to jerry of $80,000. what is the amount of the gain that must be recognized by jerry on the transfer of the property and what is sally's tax basis in the property after the transfer, respectively?

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value