1. Which of the following will not be includible in your gross income on your tax return:

*******Group of answer choices

A. Gift card your boss gives you for ice cream for working so hard

B. A movie ticket you found on the ground

C. A lawsuit you settled in your favor

D. A stick of gum your friend gave you

E. All of the above are includible in your gross income

2. Mike Jones purchased an apartment building on August 15, 2012 for $200,000. On December 31, 2018, (use full year of depreciation for 2018) the building was sold for $220,000. On his 2018 tax return, Mike should report which of the following:

A. Section 1231 gain of $20,000 and ordinary income of $30,000

B. Section 1231 gain of $20,000 and ordinary income of $46,360

C. Ordinary income of $66,360

D. Section 1231 gain of $66,360

3. Which of the following is NOT allowed to be excluded from your income as a de minimus fringe benefit:

A. Daily coffee in the break room

B. Making copies for class

C. $5 gift card to Starbucks

D. Discounted soda from the snack machine

4. Mia sells her property to Jose for $100,000 cash, $60,000 note receivable from Jose and Jose assumes her $50,000 remaining debt on the property. Mia is a cash basis taxpayer. Mia's adjusted basis for the property is $75,000. What is the realized gain or loss to Mia and the basis for Jose?

A. Gain $75,000 and Basis $150,000

B. Gain $25,000 and Basis $100,000

C. Gain $135,000 and Basis $210,000

D. Gain $135,000 and Basis $160,000

5. Beyonc is a retiree living off of social security and spends her days on her house boat floating up and down the Sacramento river. One day in August 2017, Beyonc heard a loud noise and it appeared something had struck her boat. As she peaked her head out the window a man dressed in a pirate outfit yells Sorry about that, I was testing out my new cannon ball and accidently struck your boat. Beyoncs boat ended up sinking to the bottom of the river. When it comes to determining Beyoncs deductible loss for her boat the first step is to determine the lesser of these two things.

A. FMV before event-FMV after the event, Insurance

B. Adjusted Basis, Insurance

C. Original Cost, Adjusted Basis

D. FMV before event-FMV after event, Adjusted Basis