1. Abigail was an original investor in, and owns a 25% interest in, Decorate Your Dream LLC, a home decorating company. Abigail paid $60,000 for her interest. This year, Decorate Your Dream did very well and had a profit of $100,000. However, no distributions were made. What is Abigails basis in her interest in Decorate Your Dream at the end of this year?

2.Karen owns a downtown office building. Karen originally purchased the building for $900,000 and took depreciation deductions of $400,000. Straight-line depreciation would have been $300,000. What are the tax consequences if Karen sells the building for $2,100,000?

3 Mary and Paul, each age 60, are married filing a joint return, using the standard deduction. They have no dependents. Their total Box 1 wages amount to $50,000, with federal income tax withheld of $2,000. They also had $2,300 of qualified dividend income. They have no adjustments to gross income. What is their taxable income (Line 15 on the 1040 form)?

4.Jane and Peter, each age 60, are married filing a joint return, using the standard deduction. They have no dependents. Their total Box 1 wages amount to $34,000, with federal income tax withheld of $2,000. They also had $2,300 of qualified dividend income. They have no adjustments to gross income. What is their tax from the table (Line 16 on the 1040 form)?