Question
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
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.
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