10. In 2020, Frank decided to start a program of lifetime giving to his two children and six grandchildren. He also wants to give money to his two god children (who are not related to him). Frank wants to control the amount of annual gifts in order to avoid the imposition of the Federal gift tax and he does not desire to use any of his or his wife Marthas unified tax credit. If Martha is willing to split each gift, what is the maximum total of gifts he can give in 2020:

a. $15,000.

b. $150,000.

c. $240,000.

d. $300,000.

e. None of the above.

11. In the current year Lucy had a nonbusiness bad debt of $20,000 and a long-term capital gain of $12,000. Her only other income was $50,000 compensation for services. What is her adjusted gross income this year?

a. $42,000.

b. $47,000.

c. $62,000.

d. $70,000.

e. None of the above.

12. Iris is self-employed and flies from Minneapolis to Florida on business. She spends three days on business and then takes two days of vacation. Her expenses are as follows:

Air Fare $1,000

Lodging (5 days x $200) 1,000

Meals (5 days x $100) 500

Entertainment of clients 500

Iris deduction is:

a. $1,750

b. $2,000

c. $2,250

d. $3,000

e. None of the above.