1. Bill and Doris were divorced in 2018. Their only marital property was a personal residence with a value of $150,000 and cost of $50,000. Under the terms of the divorce agreement, Doris would receive the house and Doris would pay Bill $17,000 each year for 5 years, or until Bills death, whichever should occur first. Bill and Doris lived apart when the payments were made to Bill. The divorce agreement did not contain the word alimony.

a. Bill must recognize a $50,000 [$75,000 1/2($50,000)] gain on the sale of his interest in the house.

b. Bill does not recognize any income from the above transactions.

c. Doris is not allowed any alimony deductions.

d. Doris is allowed to deduct $17,000 each year for alimony paid.

2.For the tax year 2019, Johnny reported gross income of $250,000 on his timely filed Federal income tax return. If Johnny inadvertently omitted gross income of $63,000, when does the statute of limitations on assessments expire?

	a.	April 15, 2024
	b.	April 15, 2023
	c.	April 15, 2026
	d.	never, because the statute of limitations never runs on a gross understatement of tax

3.A jury trial is available in which of the following trial courts:

	a.	U.S. Tax Court
	b.	U.S. Court of Federal Claims
	c.	U.S. District Court
	d.	U.S. Circuit Court of Appeals
	e.	None of these

4.In 2019, Cindy, who is single, has salary income of 32,000 and interest income of 1,500. She makes a contribution to an individual retirement account (IRA) in the amount of $6,000. Her itemized deductions for 2019 are $6,500. Assuming she wishes to minimize her tax liability, which of the following is correct?

	a.	Her AGI is $27,500 and her taxable income is $21,000
	b.	Her AGI is $33,500 and her taxable income is $21,000
	c.	Her AGI is $27,500 and her taxable income is $15,300
	d.	Her AGI is $33,500 and her taxable income is $15,300

5. For the current year, Adam has wages of $90,000 and the following property transactions:

Stock investment sales
Long-term capital gain	$ 10,000
Short-term capital loss	(15,000)
Loss on sale of camper (purchased 4 years ago and used for family vacations)	(3,000)

What is Adams AGI for the current year?

	a.	$85,000
	b.	$87,000
	c.	$82,000
	d.	$89,000
	e.	None of these