1.) Greg has a personal residence with an adjusted basis of $50,000and a FMV of $50,000.Greg's property was condemned by the state for a highway project and Greg received$45,000as compensation. What is Greg's deductible loss?

a.

$0

b.

$5,000

c.

$7,500

d.

$ 15,000

2.)During the currentyear,MunterCorporationexchanged an old machine used in its businessfor a similar new machine to be used in its business. The following summarizes the relevant data in the date of the exchange:

Adjusted Basis Old Machine (To Munter): $4,000

Adjusted Basis New Machine (To Seller): $3,000

Fair Market Value Old Machine (To Munter): $5,500

Fair Market Value New Machine (To Seller): $3,500

As part of the exchange, MunterCorporation received $2,000 cash. What is the recognized gain on this exchange, and what is the tax basis of the new machine to Munter, respectively?

a.

$0 and $1,000

b.

$2,000 and $4,000

c.

$1,500 and $3,500

d.

$0 and $2,000

3.)During the current year,Fink exchanged an apartment building havinga fair marketvalue of $500,000 for an office building having a fair market value of $650,000. As a part of the transaction, Fink assumed the other party's mortgage on the office building in the amount of $50,000. Fink's adjusted basis for his apartment building was $570,000. What is Fink's recognized gain and the basis of his new office building?

a.

$0 gain;$570,000basis

b.

$0 gain;$620,000basis

c.

$50,000 gain;$570,000basis

d.

$0 gain;$520,000basis

4.)During the current year, Bork exchanged an apartment building having a fair market value of $500,000 for an office building havinga fairmarket value of $450,000. As part of the transaction, the other party assumed Bork's mortgage on the apartment building in the amount of $50,000. Bork's adjusted basis for this apartment building was $420,000. What is Bork's recognized gain or loss and the basis of this new office building?

a.

$0 gain or loss;$420,000basis

b.

$0gain or loss;$470,000basis

c.

$50,000gain or loss;$420,000basis

d.

$80,000gain or loss;$450,000basis

5.) During the current year,David Dacey had property with an adjusted basis to him of $50,000 condemned by the state. The state paid Dacey $65,000 for the property. Mr. Dacey immediately purchased similar new property for $58,000. If David Dacey elects to defer recognition of gain, what is the basis of Dacey's replacement property?

a.

$35,000

b.

$50,000

c.

$58,000

d.

$66,000

6.)A calendar-year individual taxpayer's office building was destroyed by fire on December 24th 2013.Insurance proceeds of $800,000were receivedon March 1st, 2014. What is the latest date that the individual can replace the office building in order to qualify for nonrecognition of gain from an involuntary conversion?

a.

December 31,2013

b.

December 31,2015

c.

March 1,2015

d.

December 31, 2016