1. Sam, not married without dependents, has $140,000 salary and $50,000 qualified dividends. Her taxable income is $170,000. Compute Sam's total tax liability for the current year including both her income tax and net investment income tax, if applicable.

$30,136.

$30,321.

$32,036.

$34,636.

2. Sam, married filing separately without dependents, has $285,000 salary and $75,000 qualified dividends. Her taxable income is $340,000. Compute Sam's total tax liability for the current year including both her income tax and net investment income tax, if applicable.

$77,753.

$80,603.

$81,503.

$84,353.

3. What is Jacks net investment income tax liability in the current year if Jack, single filing status, has $170,000 salary, $25,000 interest income, $10,000 dividends, and $5,000 long-term capital gains?

$0.

$380.

$570.

$1,520.

4. Which one of the following items can MOST likely offset a passive activity suspended losses?

Active business income.

Capital gains.

Rental income.

Compensation income.

5. How much of Huiying's loss is disallowed due to her tax basis or at-risk amount if she invested $5,000 in a limited partnership for a 10% interest and the partnership had $10,000 of qualified nonrecourse debt, $30,000 of debt Huiying is not responsible to repay, and a ($100,000) loss (assume Huiying is allocated a 10% share of both types of debt and the loss)?

$0; all of her loss is allowed to be deducted.

$3,000 disallowed because of her at-risk amount.

$3,000 disallowed because of her tax basis.

$1,000 disallowed because of her at-risk amount.