1. Terry purchased an ice-cream machine for $14,000; the seller is holding the note. Terry paid $1,500 for the required wiring and installation. Terry has deducted depreciation on the ice-cream machine for 2 years totaling $2,400. Terry owes $8,000 to the Seller. What is Terrys adjusted basis in the ice-cream machine?

2.Sue received 50 shs of Zoll Industry stock from her Uncle Dave for a graduation present. Dave purchased the stock in 1986 at $20/sh. The stock was worth $50/sh when Sue graduated!! . What is Sues basis in the stock?

6.(TCO H) Chuck had a short-term capital loss of $5,000, a short-term capital gain of $1,900, a short-term capital loss carryover from 2015 of $700, a long-term capital gain of $800, and a long-term capital loss of $1,000. What is net gain (loss) for 2015? What is his recognized gain (Loss) for 2015? What is his short-term capital loss carryover (if anything) to 2016? What is his long-term capital loss carryover (if anything) to 2016?

7.(TCO D) In May 2016, Kevin McElwainee sells property with an adjusted basis of $75,000 for $250,000 to Josh Amico. Josh pays Kevin $12,500 cash at closing and the remaining to be paid in 5 annual installments of $47,500 beginning in May 2017. Ignore the impact of interest for this exercise. (a) What is Kevins gross profit or loss on the sale? (b) what is Kevins gross profit percentage? (c) How much profit will Kevin recognize in 2016? (d) How much profit will he recognize in the later years?(Points : 20)