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1. Joshua is an accrual basis, calendar-year taxpayer. On November 1, 2022, Joshua leased out a building for $6,000a month. On that day Joshua received

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1. Joshua is an accrual basis, calendar-year taxpayer. On November 1, 2022, Joshua leased out a building for $6,000a month. On that day Joshua received 6 months rental income on the building, a total of $36,000($6,0006 months). How much income must Jones include on his 2022 tax return as a result of this transaction? (Show you) Calculation a. $4,000 b. 58,000 c. 536,000 d. 524,000 c. $6,000 2. Dot Corporation has changed its year-end from a calendar year-end to August 31 . The income for its short period from January 1 to August 31 is $54,000. How much is the tax for this short period? c a. $6,250 c b. $11,340 c c. $8,667 c d. $2,040 3. Vernon is a cash basis taxpayer with a calendar tax year. On October 1, 2022, Vernon entered into a lease to rent a building for use in his business at $3,000 a month. On that day, Vernon paid 18 months' rent on the building, a total of $54,000 ($3,00018 months). How much may Vernon deduct for rent expense on his 2022 tax retum? c a. $12,000 c b. $54,000 c c. $36,000 c d. $9,000 4. Serena and Jada are sisters. Jada sold stock to Serena for $5,000, its fair market value. The stock cost Jada $10,0005 years ago. Also, Jada sold Carol (an unrelated party) stock for $2,000 that cost $10,0003 years ago. What is Jada's recognized loss before the $3,000 capital loss limitation? c a. $8,000 c b. $13,000 c c. $5,000 c d. $0 5. Alivia sells to her father, Josiah, her shares in AA Corp for $55,000. The shares cost Alivia $80,000. How much loss may Alivia deduct from the sale? c a. $25,000 a b. $80,000 . $55,000 c d. $0 6. Len and Marilyn got a divorce. Marilyn has $150,000 in a 401(k), all pre-tax contributions, and the court issued a QRDO stating that half of that balance be transferred to Len. Len puts the money into a rollover IRA. What are the tax implications for Len? D a .Len will be taxed on the $75,000 as a capital gain. ab.Len will not be taxed until he starts taking distributions. ac. Len will pay 10 percent that is automatically withheld on the transferred amount. d. Len will be taxed on the $75,000 as ordinary income

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