Here is you case one. Write a short MEMO in IRAC format – Issues, rules, analysis and conclusion.Wheeler purchased two parcels of real property for $10,000 each in Year 1 and held the property for investment. These properties appreciated in value and were reassessed for property tax purposes at $15,000 each in Year 2. In Year 3, Wheeler sold one parcel for $20,000 to Dealer and, in a taxable exchange, traded the other parcel for a lot on an island in Maine, which was worth $22,000, on which he planned to build his vacation home. When and how much will Wheeler recognize income from the property transactions?