1. For tax purposes, which of the following is true regarding stock and bond investments?

		A dealer in securities normally reports capital gains and losses from the sale of securities to his clients..
		Amortization of a bond discount is reported as interest income.
		Amortization of a bond premium is required, not elective.
		The settlement date is used as the date of sale for stocks and bonds.

2. Talbot purchased a laptop for $1,500. The laptop is used solely for his self-employment business. Two years later, Talbot experienced serious financial difficulty and sold the laptop for $1,000, sustaining a $500 loss. What is the character of the loss?

		Section 1245 loss
		Capital loss
		Casualty loss
		Section 1231 loss