Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an

Question:

Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of 43. $15,000 and a fair market value of $20,000. Th e land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda?
$55,000 a.
$60,000 b.
$52,500 c.
$57,500 d.
Bill Burns purchases furniture from his employer for $5,000 during 2012. Th e fair market value of the furniture 44. is $8,500. What is Bills basis in the furniture?
$5,000 a.
$8,500 b.
$12,500 c.
$2,500 d.
Bill Burns purchases furniture from his employer for $5,000 during 2012. Th e fair market value of the furniture 45. is $8,500. What amount, if any, must Bill include as income for 2012?
$0 a.
$5,000 b.
$7,500 c.
$3,500 d.
Doug Doolittle receives a nontaxable stock of 20 shares of Edwards with a 46. fair market value at of $800. Doug previously owned 100 shares of Edwards which he purchased three years ago for $6,000. The basis per share of the 20 shares of Edwards stock is:
$0 a.
$40 b.
$50 c.
$60 d.
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