1. In 2017, Taxpayer T ("T") sold 100 shares of X corporation stock to T's son 5 ("S") for $50,000. T's adjusted basis in the 100 shares of X stock was $70,000. In 2022, S sold the same 100 shares of X stock to D, who was not related to S, for $85,000. How much income, gain or loss, if any, does S recognize on the sale in 2022?

2. In 2017 Taxpayer T ("T") purchased a house for $900,000. T paid using $400,000 cash and took a mortgage (loan) of $500,000. T used the house exclusively as a vacation home. In 2022, when the house had a fair market value ("FMV") of $1,200,000, T sold the house to S subject to the $500,000 mortgage. T received $700,000 cash and S assumed the $500,000 mortgage. How much gain/income, if any, does I recognize in 2022?

3. True or False. A taxpayer may exchange a rental home, which has appreciated in value, for a partnership interest of the same value and not recognize any income under IRC section 1031 (Like Kind Exchange).

4. Taxpayer T ("T") owned a passive investment which generated a $15,000 loss during the year. In addition, T had $100,000 salary, $5,000 of interest income from a corporate bond and $4,000 of tax-exempt interest income. Which of the following statements is correct?

a. T's AGI is $109,000 b. T's AGI is $105,000 c. T's AGI is $100,000 d. T's AGI is $90,000 e. T's AGI is $85,000 f. T's AGI is not listed in a-e