1- Stan received a $320 refund on his prior year state income tax. Stan did not itemize last year but he intends to do so this year. What amount of his state refund should he include as taxable income?

a. $0

b. $160

c. $320

d. $320 in included as taxable income if he itemizes this year.

2- In the current year, Helen sold Section 1245 property for $6,000. The property cost $26,000 when it was purchased 5 years ago. The depreciation claimed on the property was $24,000. The Sales Price on this transaction is

a. $20,000

b. $30,000

c. $6,000

d. $2,000

3- If purchased a rental property for $200,000 and invested another $50,000 in home renovations. Youve claimed a total of $25,000 in depreciation expense to date. Your adjusted basis is this property is

a. $200,000

b. $225,000

c. $250,000

d. $275,000