1. Stock transactions. Fillipo purchased 100 shares of stock in Burgundy Corp. each year between 2003 and 2005. In 2003, he bought 100 shares for $23,000 total; in 2004, he bought 100 shares for $30,000 total; and in 2005, he bought 100 shares for $46,000 total. This year, he sold 150 shares for $80,000 total. He did not provide his broker any instructions on which shares to sell. How much gain does he recognize on this sale?

2. Adjusted basis. Alfhild bought some metal-working equipment for $5,000 upfront and an agreement to pay $7,000 over the next few years. She paid Liam $1,000 to install the equipment in her workshop. As of January 1 of this year, she had paid off $3,000 of the $7,000 owed. Also, she had taken $4,000 of depreciation deductions. What was Alfhilds adjusted basis on that date?

3. Capital gains. This year, Haruto had one transaction involving a capital asset he held for more than a year: he realized a gain of $59,000. He had two transactions involving capital assets he held for less than a year: he realized a gain of $15,000 on one and a loss of $26,000 on the other. What is the total amount of capital gain that qualifies for preferential capital-gains tax rates (i.e., net capital gain or NCG)?

4. Residence definition. Susan owns a houseboat. During the year, Susan and her friends partied on the houseboat for 20 days and went home at 11:00 pm each night. She rented out the houseboat to strangers for overnight trips at full rental rates for 250 days. She also rented out the houseboat for overnight trips to her friends at a 50% discount for 10 days. To determine whether the houseboat is a residence for tax purposes, how many personal use days and how many rental use days were there?

A. 10 personal use days; 250 rental use days

B. 30 personal use days; 250 rental use days

C. zero personal use days; 260 rental use days

D. 20 personal use days; 260 rental use days

E. zero personal use days; 250 rental use days

5. Vacation home. Saoirse owns a vacation home which she uses for vacation for 30 days and rents to strangers at fair rental value for 30 days. The rest of the year it is not used. She uses the IRS method to allocate expenses. She had $4,000 of rental income. She paid no mortgage interest or real estate taxes. Operating expenses (including maintenance, insurance, utilities, etc.) were $10,000. Depreciation would be $6,000 if the home were solely used as a rental. (To be clear, the expenses noted above are all totals BEFORE allocation.) What expenses can she deduct for the rental use of the vacation home?

A. $5,000 of operating expense; $3,000 of depreciation

B. $2,500 of operating expense; $1,500 of depreciation

C. $4,000 of operating expense; no depreciation

D. $1,000 of operating expense; $3,000 of depreciation