1 In 2020, Frank earns $17,700 in wages as an employee, and has $150,000 of net self-employment income. He has $1,354.05 in Social Security and Medicare tax withheld from his wages ($17,700 x 7.65%). In addition to that amount, how much Social Security and Medicare tax will he owe on his self-employment income? $17.074.80. $19.230. $22,950, O None of the above. QUESTION 2 Darryl pays $8,000 in self-employment tax (Social Security and Medicare). What impact if any will this have on his regular federal income tax? No effect. An $8,000 itemized deduction. A $4,000 "above the line" deduction. OA $4.000 itemized deduction. QUESTION 3 Carol's factory burns down in 2020. Her basis in it was $175,000, and she received $300,000 in insurance proceeds from her fire insurance company. She spends $280.000 on a new factory in 2021. How much gain is she taxed on as a result of the situation? Zero. $20,000. $105,000. $125,000. QUESTION 4 Sarah's factory burns down. Her basis in it was $240,000 and she receives $400,000 in insurance proceeds from her fire insurance company. She buys a new factory within one year for $460,000. What will her basis in the new factory be? O$240,000. O$300,000. $400,000. $460,000. QUESTION 5 In a like-kind exchange. Harry exchanges land used in his business for different land he will use in his business. The land he gave up was worth $100,000 and his basis in it was $80,000. The land he got back was worth $92,000 and he also got back $8,000 in cash. How much gain will he recognize (be taxed on) on the transaction? None. $8,000. $12,000. O $20,000. QUESTION 6 In a like-kind exchange between Lou and Sam, Lou exchanged land used in his business for different land he will use in his business. The land he gave up was worth $80,000 and his basis in it was $50,000. It was subject to $5,000 of debt. The land he got back was worth $75,000 and Sam took over Lou's $5.000 debt. How much gain will Lou recognize (be taxed on) on the transaction? Zero. $5,000. $25,000 O$30,000 QUESTION 7 In a like-kind exchange, Carol exchanges land used in her business for different land she will use in her business. The land she gave up was worth $60,000 and her basis in it was $72.000. The land she got back was worth $53,000 and she also got back $7,000 in cash. How much loss will she recognize (be allowed to deduct) on the transaction? Zero $7,000. $12,000. $72,000. QUESTION 8 In a like-kind exchange. Bill exchanges land used in his business for different land he will use in his business. The land he gave up was worth $90,000 and his basis in it was $62,000. The land he got back was worth $85,000 and he also got back $5,000 in cash. What basis will Bill have in the land he receives? Zero. $5.000. $62.000. O $85.000