1. Which of the following is not a factor used in determining assessed value?

a. Original price

b. Improvements

c. True cash value

d. a, b and c are all factors used

2. Which of the following properties are exempt from property taxation?

a. Federal lands

b. Residential properties

c. Nonprofit organization lands

d. Both a and c

e. None of the above

3. TG&I Industries, Inc., has had a portion of its factory site designated as a CERCLA clean-up area. The cost of the clean-up will be $675,000. The assessor has valued TG&I's plant at $7,000,000. TG&I wants that value reduced by the $675,000.

a. It is against public policy to give TG&I a credit for environmental clean-up costs.

b. TG&I is entitled to the credit of $675,000 only if it did not contaminate the site.

c. TG&I is entitled to a $675,000 credit.

d. TG&I is entitled to one-half of $675,000 as a credit.

4. Property exchanges involving residential property:

a. Have no tax consequences.

b. Never result in gains.

c. Are illegal

d. None of the above

5. How long must an owner hold title to property in order to qualify for the lower capital gains rate for sale proceeds?

a. Six months

b. One year

c. Five years

d. Ten years

6. Lee and Carol Parton have sold their home for $750,000. They have lived in the home for 22 years. They are planning to retire and travel. They purchased the home for $200,000 and have made $50,000 in improvements. Their total gain realized on the sale is:

a. $550,000.

b. $500,000.

c. $750,000.

d. None of the above

7. The county assessor for Cuyahoga County has determined that a property located in the downtown area of Cleveland, which is currently being used as a storage facility, could be used as a casino and its revenue would be triple its current gross revenue. As a result, the assessor increased the propertys valuation by 20%. Which method of valuation is the assessor using?

a. Market approach

b. Income approach

c. Cost approach

d. None of the above