18. During 2019, Lisa (age 66) furnished more than 50% of the support of the following persons:

Her current husband who has no income and is not claimed by anyone else as a dependent.

Her stepson (age 19) who lives with her and earns $6,000 as a dance instructor. He dropped

out of school a year ago. Her ex-husband who does not live with her. The divorce occurred two years ago. Her former brother-in-law who does not live with her.

Presuming that all other dependency tests are met, on a separate return how many dependents may Lisa claim?

a. Two

b. Three

c. Four

d. Five

e. None of these

19. Abby sells real property for $300,000. The buyer pays $5,000 in property taxes that had accrued

during the year while the property was still legally owned by Abby. In addition, Abby pays $15,000

in commissions and $3,000 in legal fees in connection with the sale. How much does Abby realize

(the amount realized) from the sale of her property?

a. $277,000

b. $282,000

c. $287,000

d. $300,000

20. The bank forecloses on Lisas apartment complex. The property had been pledged as security on a nonrecourse mortgage whose principal amount at the date of foreclosure is $750,000.

The adjusted basis of the property is $480,000, and the fair market value is $750,000. What is Lisas

recognized gain or loss?

a. $270,000

b. ($750,000)

c. $0

d. ($480,000)