Prof. Lazy decides to assign final grades in CSE 312 by ignoring all the work the students have done and instead using the following probabilistic method: each student independently will be assigned an A with probability θ, a B with probability 3θ, a C with probability 1/2, and an F with probability 1/2 4θ. When the quarter is over, you discover that only 2 students got an A, 10 got a B, 60 got a C, and 40 got an F. Find the maximum likelihood estimate for the parameter θ that Prof. Lazy used. Give an exact answer as a simplified fraction.

According to Section 1031 of Internal Revenue Code, an exchange of like-kind property is referred to as like-kind exchange, if the exchange meets the following criteria:

The property should be exchanged only for the 'like-kind' (same class) property. The 'like-kind' property that is in exchange should be either used in operations of business or held for investment purposes. The exchange should be done under specific timing restrictions or requirements (for indirect exchanges through third parties).

Step-by-step explanation:

A) Explanation: Since both the properties in exchange are real properties which are used in business, this is a like-kind exchange

B)

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Mortgage value L is relieved off 40,000

Amount realized 160,000

Less: Adjusted basis (175:000)

Realized loss by L (15,000)

C) Explanation: Since the loss realized is due to exchange, the loss is not recognized.

D) Explanation: Since the loss is not recognized, the character of gain or loss could not be

E) Explanation: The total of realized loss, $15,000 (From Requirement (b)) is deferred.

F) Determine the basis of property acquired in exchange, bowling alley.

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Deferred loss 15,000

Basis of bowling alley 135,000