1. Ben bought a painting for $17,000. Several years later, Ben sold it for $23,000. The year Ben sold the painting, he was in the 15% tax bracket. Ben's gain on the picture will be taxed at:

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15%.

25%.

28%.

33%.

2.

Dwayne's investment property was condemned. He purchased the property for $210,000, received a net condemnation award of $250,000, and purchased replacement property for $280,000. What is the gain recognized after the replacement property is purchased?

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$0

$40,000

$210,000

$250,000

3.

In which case below will the taxpayer be able to exclude all income from their canceled debt? A client:

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	Received a Form 1099-C with $17,400 in box 2 and $15,700 in box 7, and they were insolvent by $15,800.
	Had a debt of $5,400 canceled. Immediately prior to the debt, they were insolvent by $2,750.
	Had $11,500 of debt canceled. Immediately prior to the cancellation, they were insolvent by $12,000.
	Had a debt of $7,850 canceled. Immediately prior to the debt, they were insolvent by $6,500.