1.

What is the maximum amount of a 2019 personal residence acquisition debt on which interest is fully deductible on Schedule A?

a. $1,000,000.

b. $750,000.

c. $250,000.

d. $0.

2.

Jack buys a car from his employer for $7,000. The fair value of the car is $10,000 and it basis to the employer is $12,000.

What is jack's basis in the car?

3.

Jack purchased a printing machinefor $120,000 for use in business. As to the machine, he deducted MACRS cost recovery of $28,000, and maintenance costs of $4,200.

Calculate Jack's adjusted basis for the machine?

4.

. Dennis receives $11,500 during the current tax year from Blanca for some office space in Anaheim, California. The rent covers eight months, from August 1 of the current year to March 31 of the following year. The amount also includes a security deposit of $1,500. How much should Dennis report as rental income in the current tax year?