13) In general, recognized gain or loss is the term used to describe:

Question 13 options:

1)

a taxpayer's amount of true economic gain or loss when property is disposed.

2)

the amount of realized gain or loss the taxpayer reports on his (or her) tax return.

3)

an amount that does not affect the taxpayer's tax liability.

4)

all of these.

14)Becky Bell owned common stock in a corporation that she purchased two years ago for $25,000. On June 6, 2016, Becky sold the stock for its $11,000 fair market value to her son, Max Monroe. On December 19, 2016, Max sells the stock to an unrelated party for its $13,000 fair market value. How much gain or loss will Becky and Max recognize on their respective income tax returns for 2016?

Question 14 options:

1)

$0 and $0, respectively.

2)

($14,000) and $0, respectively.

3)

($14,000) and $2,000, respectively.

4)

$0 and $2,000, respectively.

5)

None of these.

15)February 20, 2016: Lee Ranger purchased 100 shares of Pine Corp. stock for $30 a share.

April 7, 2016: Lee sold 50 shares of Pine Corp. stock for $20 a share.

April 24, 2016: Lee purchased 25 shares of Pine Corp. stock for $25 a share.

What is the basis of the 25 shares purchased on April 24, 2016?

Question 15 options:

1)

$625

2)

$875

3)

$1,125

4)

$750

16)Bob Bixby gave his daughter, Jane, his personal residence with an adjusted basis to him of $260,000 and a fair market value of $250,000. Jane lived in the house for two years and then sold it for $240,000. As a result of the sale, Jane will:

Question 16 options:

1)

Report no gain or loss

2)

Report a $10,000 loss

3)

Report a $20,000 loss

4)

Have her father report a $20,000 loss

17)On September 24, 2016, Walter Whistler gave property with a fair market value of $64,000 to Jim Jacobs. Walter's adjusted basis in the property was $49,000. The taxable gift was $50,000 and gift taxes paid on the property were $10,000. What is Jim's basis in the property?

Question 17 options:

1)

$49,000

2)

$50,000

3)

$52,000

4)

$53,000

5)

$64,000

18)Freda Freemont receives a nontaxable stock dividend of 30 shares of preferred stock on her Georgia Corporation common stock. Freda purchased the 200 shares of common stock two years ago for $12,000. On the date of distribution, the fair market value of the common stock was $75 per share and the fair market value of the preferred was $100 per share. What is the new basis, per share, of the common stock?

Question 18 options:

1)

$75.00

2)

$50.00

3)

$100.00

4)

$66.67

19)Brian Brewster sold property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $150,000. The property had cost $250,000 and he had made improvements of $50,000. Depreciation of $100,000 has been claimed and selling expenses were $20,000. What is the amount of gain?

Question 19 options:

1)

$100,000

2)

$200,000

3)

$250,000

4)

$260,000

5)

$330,000