1. On June 15, 2015, Allen sold land held for investment to Stan for $50,000 and an installment note of $250,000 payable in five equal annual installments beginning on June 15, 2016, plus interest at 10%. Allen's basis in the land is $150,000. What amount of gain is recognized in 2015 under the installment method?
a.$0.
b.$25,000.
c.$50,000.
d.$150,000.
2. On July 1, 2015, Andrea sold land held for investment to Taylor. Andrea's land had a $300,000 basis and was subject to a $150,000 mortgage. Under the contractual agreement, Taylor will pay Andrea $85,000 on the date of the sale, will assume the mortgage, and will give Andrea a note for $375,000 (plus interest at the federal rate) due the following year. What is the contract price in the year of sale?
a. $460,000.
b. $525,000.
c. $610,000.
d. $760,000.
3. A taxpayer who sells her personal residence in 2015 may exclude some or all of the gain on the sale if the residence was owned and lived in for
a. At least four years before the sale date.
b. Any two years of a five-year period before the sale.
c. Any of the last four years of an eight-year period before the sale.
d. At least one year prior to the sale date.
4. Daniel, who is single, purchased a house on May 15, 1992, for $115,000. During the years he owned the house, he installed a swimming pool at a cost of $24,000 and replaced the driveway at a cost of $12,000. On April 28, 2015, Daniel sold the house for $470,000. He paid a realtor commission of $28,000 and legal fees of $1,000 connected with the sale of the house. What is Daniel's recognized gain on the sale of the house?
a. $0.
b. $ 40,000.
c. $290,000.
d. $319,000.
5. On June 1, 2015, Nigel sells land (basis $55,000) to his son Ted for $40,000, the land's fair market value on the date of the sale. On September 21, 2015, Ted sells the land to an unrelated party. Which of the following statements is correct?
a. If Ted sells the land for $35,000, he has a $20,000 recognized loss on the sale.
b. If Ted sells the land for $65,000, he has a $25,000 recognized gain on the sale.
c. If Ted sells the land for $45,000, he has a $5,000 recognized gain on the sale.
d. If Ted sells the land for $57,000, he has a $2,000 recognized gain on the sale.
6. Bryce owns 200 shares of Basic Company stock that he purchased for $8,000 three years ago. On December 28, 2015, Bryce sold 100 shares of the stock for $2,500. On January 3, 2016, Bryce repurchased 50 shares for $1,100. How much of the loss can Bryce deduct in 2015?
a. $0.
b. $ 750.
c. $4,400.
c. $5,500.