1 Captain America finally got tired of saving the world and so he retired in May 2017. After a couple of months doing nothing, he concluded that he was bored so he bought a used tugboat to help move ships around the San Francisco Bay. He bought the boat on September 10, 2017 and paid $1,998,996 including taxes and fees. How much will his MACRS deductions be for 2017?

Group of answer choices

A. 510,000

B. 658,900

C. 744,498

D. 148,900

E. 0

2. On March 15, 2015, Arnold purchased 100 shares of Bay Corporation for $60 each. On August 31, 2016 Arnold purchased 200 shares of Bay Corporation for $80 each. And on February 25, 2014, Arnold purchased 50 shares of Bay Corporation for $60 per share. On May 15, 2017, Arnold sold 275 shares for $110 per share. Assume ordinary income tax rates are 40% and capital gain tax rates are 20% for Arnold. How much is the gain if Arnold wants to minimize the amount of gain recognized?

Group of answer choices

A.11,250

B. 9,750

C. 10,250

D .8,750

3. On March 15, 2015, Arnold purchased 100 shares of Bay Corporation for $60 each. On August 31, 2016 Arnold purchased 200 shares of Bay Corporation for $80 each. And on February 25, 2014, Arnold purchased 50 shares of Bay Corporation for $60 per share. On May 15, 2017, Arnold sold 275 shares for $110 per share. Assume ordinary income tax rates are 40% and capital gain tax rates are 20% for Arnold. How much is the gain if Arnold wants to minimize the amount of tax liability?

Group of answer choices

A. 11,250

B. 9,750

C. 10,250

D. 8,750