please answer the questions and separate them but the corresponding number and number them please.
1) Harold and Bart own 75% of the stock of Orange Motors. The other 25% of the stock is owned by Jeb. Orange Motors entered into an agreement with Harold and Bart to acquire all of their stock in Orange Motors in addition, Harold and Bart signed a noncompeting agreement with Orange Motors . Under the terms of the noncompete agreement, Orange will pay Harold and Bart $15,000 each per year for years. Identify the relevant tax issues for Orange Motors.
2) On Nov 4th 2009, Blue company acquired an asset (27.5 year residential real property) for $200,000 for use in its business. In 2009 and 2010 , respectively, Blue took $ 642 and $5,128 of cost recovery. These amounts were incorrect because Blue applied the wrong percentages (those for 39 year rather than 27.5 year) Blue should have taken $ 910 and $7,272 cost recovery in 2009 and 2010. On Jan 1 2011, the asset was sold for $180,000. Calculate the gain or loss on the sale of the asset in 2011.
3) On May 5, 2011, Christy purchased and placed in service a hotel. The hotel cost $1.8 million. Calculate Christy’s cost recovery for 2011. For 2021
4) Olga is the proprietor of a small business. In 2011, the business income, before consideration of any cost recovery of 179 deduction, is $750, 000. Olga spends $ 2, 050, 000 on new seven-year class assets and elects to take the 179 deductions on them. She elects not to take additional first year depreciation. Olga’s cost recovery deduction for 2011, except for the cost recovery for 2011 with respect to the seven year assets and the amount of any 179 carryforward.
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