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On March 20, 2010, Jill and Jack entered into a contract for the transfer of real estate. Under the terms of the contract, Jill was required to execute a deed transferring her real estate to Jack on May 1, 2010. Jill's property had an adjusted basis of $130,000 and a fair market value of $233,000. The parties' contract provided that Jack had until June 13, 2010 to decide which parcel of his real estate he would transfer to Jill and to so advise Jill in writing, and until October 24, 2010 to execute the deed to Jill for that parcel. However, if a choice was not made by Jack on or before June 13, 2010 as to which parcel he would transfer to Jill, then Jack was required to pay Jill the sum of $233,000 no later than June 14, 2010. On June 12, 2010, Jack advised Jill, in a writing delivered to Jill on that date in accordance with the contract, of the parcel chosen. Jack's chosen property had an adjusted basis of $300,000 and a fair market value of $223,000 on June 12, 2010 (and on October 24, 2010). Jack would therefore also transfer $10,000 in cash to Jill when he transferred the property to her. On October 24, 2010, Jack executed a deed transferring ownership of his parcel of property to Jill. Jack also transferred $10,000 in cash to Jill on October 24, 2010. What are the tax consequences of this transaction? What issues are presented?

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