1. April 1, 2021 equipment purchased $14,000. No other depreciable assets purchased during the tax year. No Section 179 or bonus depreciation taken. Estimated residual value $1,000. What is the MACRS depreciation for year 2 if this is 7-year property?

Group of answer choices

a. $3,184

b. $3,429

c. $2,000

d. $1,857

2. Which of the following does not provide liability protection to its owner(s)?

Group of answer choices

a. General partnership

b. C corporation

c. S corporation

d. LLC taxed as a general partnership

3. C corporation has current E&P of $15,000 and $0 prior years' accumulated E&P. Its 100% owner has $12,000 basis in the corporation's stock. Owner receives $35,000 non-liquidating distribution. What is his income and ending stock basis after the distribution?

Group of answer choices

a. $23,000 capital gain, $0 basis

b. $15,000 dividend, $8,000 capital gain, $0 basis

c. $15,000 dividend, $12,000 basis

d. $15,000 dividend, $8,000 negative basis