1. Mary Ann, age 65, retires from Bust-It-Up Corporation, and receives 25,000 shares of employer stock with a fair market value at the time of $500,000. Mary Ann reported and paid ordinary income tax of $48,000 on the date of distribution of the stock. What is the net unrealized appreciation (NUA) portion received by Mary Ann at the time of distribution of employer stock?

(a) $48,000

(b) $348,000

(c) $452,000

(d) $500,000

2. Larry, age 49, is employed by BB Trucking Company as a truck mechanic. He earns $62,000 per year and received an allocation of $32,000 to his employer-provided profit sharing plan for the year. If BB Trucking does not match employee deferrals, what is the maximum amount Larry can defer to his 401(k) plan for the 2017 play year?

(a) $6,000

(b) $18,000

(c) $30,000

(d) $54,000