1-

For the current year, Susan had salary income of $20,000. In addition she reported the following capital transactions during the year:

Long-term capital gain	$ 7,000
Short-term capital gain	3,000
Long-term capital loss	(2,000)
Short-term capital loss	(5,000)

There were no other items includable in her gross income. What is the amount of her adjusted gross income for the current year?

a.$25,000

b.$19,000

c.$24,000

d.$23,000

e.None of these choices are correct.

2-

Jenny constructed a building for use as a residential rental property. The cost of the building was $82,488, and it was placed in service on August 1, 1992. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2016 for tax purposes?

a.$6,000

b.$6,547

c.$2,250

d.$3,000

e.None of these choices are correct.