1 points Mary and Pete have lived in a home from 1973 to today. They purchased the home for $180,000 and sold it for $560,000. Assume the couple has not used a section 121 exclusion before. How much will their AGI increase from selling the house? Selected Answer: $380,000 Question 2 0 out of 1 points Ross and Rachel purchased a home in 2020. Sadly Rachel divorced Ross leaving Ross with the house. He can't really afford the house alone so he sells it in 2021 for $600,000. The house was Ross's primary residence for 292 days over the past 2 years. The basis is $325,000. Assume no prior 121 exclusion has been used. How much will Ross's AGI increase due to selling the house? Hint: use 730 days as a replacement for 24 months when calculating the exclusion. Selected Answer: $150,000 Question 3 0 out of 1 points Joan owns and rents a cabin near a local ski resort. Her family used the cabin for 40 days and rents the cabin for 60 days. Joan does not qualify for active participation, and any losses will be limited by passive loss rules. It generates $13,000 of income. She has the following expenses (use 365 days for the year): Property Taxes $2,500 Mortgage Interest $5,000 Utilities $1,200 Insurance $500 Yard maintenance $1,500 Depreciation if property was 100% business $14,000 What is her total deduction related to the rental property? Assume she does not want any expenses to be limited by passive loss rules. Use the court method for allocating expenses. (Hint: I am looking for the sum of deductions, not the profit or loss. Just the amount of deductions that will be taken against the $13,000 rental income.) Selected Answer: $11,030 Question 4 0 out of 1 points Julie works as at home and is self-employed. She uses 17% of her home as office space. She has the following housing expenses: Painting of office $600, mortgage interest total $3,200, property taxes $1,800, utilities $2,400, and depreciation (if 100% business use) of $5,000. Ignoring any income limitations, what is Julie's home office deduction? Use actual expense method. Selected Answer: $1,858