1. Which of the following properties is a capital asset? a. Artwork displayed in the taxpayer's home b. Inventory c. Equipment used in a business d. Office building e. None of the above 2. A company offers its employee, Vince (age 49 ), $75,000 of groupterm insurance coverage. The annual premium paid is $125. The company pays the entire premium. According to the Uniform Premium Table, the monthly amount for each $1,000 of excess coverage for someone 49 years old is $0.15. If Vince is not a key-employee, the taxable amount of this fringe benefit is: a. $0. b. $135 c. $125. d. $45. e. $90. 3. A couple who files a joint tax return has $120,000 of AGI before considering a $40,000 loss from rental real estate activities in which they actively participate. What amount of loss must they carryover to the next year? a. $0 b. $10,000 c. $15,000 d. $25,000 e. None of the above 4. The MACRS basis of 5-year property acquired on January 13,20XI is $10,000. The property is sold on July 31,202. If the mid-quarter convention applies to personal property acquired in 20XI and straightline MACRS is used, depreciation expense for 20X2 is: a. $1,250. b. $1,000. c. $2,000. d. $1,083. e. $1,167. 5. Which of the following income items is treated as earnings from self-employment? a. Capital gain from the sale of an investment b. Dividends c. Compensation received by a registered nurse who is hired by a patient to provide private nursing services d. Compensation received by a babysitter who provides child care in the parent's home e. All of the above are earnings from self-employment