1. In 1975, Denny received stock worth $50,000 from his uncle. The uncle purchased the stock for $2,000 in 1955 and paid $15,000 of gift tax on the transfer. Denny's basis in the stock is:

Question 1 options:

1)

$2,000.

2)

$15,000.

3)

$16,400.

4)

$17,000.

5)

$50,000.

2. In 2000, Darlene received stock worth $100,000 from her aunt. The aunt purchased the stock for $15,000 in 1970. Using the $100,000 value of the stock, the aunt paid $30,000 of gift tax on the transfer. Darlene's basis in the stock is:

Question 2 options:

1)

$15,000.

2)

$40,500.

3)

$45,000.

4)

$100,000.

5)

$130,000.

3. Years ago, Frank purchased stock in ABC company for $23,000. Last year, Frank sold the stock to his daughter, Deb, for $12,000 (its current market value). Deb later sells the shares for $15,000. Deb's adjusted basis in the stock and her recognized gain or loss on the sale are:

Question 3 options:

1)	$12,000 adjusted basis, $0 recognized gain

2)	$23,000 adjusted basis,$0 recognized gain

3)	$23,000adjusted basis,$3,000 recognized gain

4)	$12,000adjusted basis,$3,000 recognized gain

5)	$12,000adjusted basis,$8,000 recognized loss

4. On November 18, 2014, equipment is stolen from ABC manufacturing. ABC purchased the equipment for $100,000 and its adjusted basis is $0. The insurance company paid ABC $20,000 for its loss on January 6, 2015. How long does ABC have to purchase qualified replacement property and how much must it reinvest to avoid recognizing its gain?

Question 4 options:

1)	December 31, 2017 and $20,000, respectively.

2)	December 31, 2015 and $20,000, respectively.

3)	December 31, 2016 and $100,000, respectively.

4)	December 31, 2015 and $100,000, respectively.

5)	None of the above.