[1] Mrs. Aubble's rental property, which had an adjusted basis of $25,000, was completely destroyed by fire. She received $38,000 of insurance proceeds. Within 1 year, she reinvested 528,000 in property similar in use, If Mrs. Pubble elects to postpone the gain from this involuntary conversion, the amount of recognized gain and her basis in the new [2] Paul and Julie Hall's daughter Tina is a first-year college student in 2022. Paul and Julie had an adjusted gross income of $62,000, and Tina's eligible education expenses were $4,900. What amount may the Halls claim for the American Opportunity Tax Credit in 2022? A. $4,000 B. $2,500 C. $2,000 D. $4,900 [3] ABC Partners purchased a building on March 15, Year 1, for $390,000. The building was depreciated using the MACRS rules with $50,000 of depreciation having been claimed. On March 14, Year 6 , the building was sold for $425,000 when the building had an adjusted basis of $340,000. For ABC's tax return, which includes March 14, Year 6 , they should repor A. Section 1231 gain of $35,000, and ordinary income of $50,000. B. Section 1231 gain of $75,000, and ordinary income of $10,000. C. Section 1231 gain of $85,000, and ordinary income of $0. D. Section 1231 gain of $50,000, and ordinary income of $35,000. [4] In 1980, Barney Bootleg purchased a $120,000 warehouse to be used as a distribution center for his beverage business. This year Barney sold the warehouse for $150,000. Barney had correctly claimed the full amount as accelerated depreciation. What gain should Barney report on the sale of the warehouse? A. $120,000 ordinary income and a $30,000Sec,1231 gain. B. $120,000 ordinary income. C. $30,000 ordinary income and a $120,000Sec. 1231 gain. D. $0 ordinary income and a $150,000Sec.1231gain. accelerated depreciation $/20,0 straight-line depreciation $120,0 [5] Devon and Tyra Beacon are married and file a joint income tax return. Both were employed during the current yea and earned the following salaries: TyraDevon$125,000110,000 To enable Tyra to work, the Beacons incurred at-home child care expenses of $12,000 for their 2 -year-old daughter. What is the amount of Child and Dependent Care Credit the Beacons can claim for the current year? A. $0 B. $600 C. $1,200 D. $1,050 [6] Mr. and Mrs. Alvarez sold their principal residence for $950,000 this year. They had lived in the home for 35 yea and it had an adjusted basis of $265,000. What is their recognized gain on this transaction? A. $685,000 B. $500,000 C. $185,000 D. $0