[19] Jim owns an apartment building with 10 identical units. He lives in one unit and rents the other nine to unrelated beginning April 1 of the current year. The total insurance premium was $2,000. Assume jim is a cash-basis, calendar-year taxpayer. What amount is jim's rental expense in the current year for the insurance policy? A. $270 B. $300 C. $1,800 D. $2,000 [20] On June 18, Year 2, Nancy sold 100 shares of A Corporation stock for $20 per share. Nancy's records relating to the stock sold are as follows: What are the character and the amount of Nancy's gain or loss? A. $250 short-term capital gain and $750 short-term capital loss. B. $250 long-term capital gain and $750 long-term capital loss. C. $250 short-term capital gain and $750 long-term capital loss. D. $250 long-term capital gain and $750 short-term capital loss. [21] Which of the following would cause an increase in the basis of an asset? A. Gift tax paid in respect of property acquired by gift. B. Casualty loss. C. Section 179 deduction. D. Exhaustion, wear and tear, and obsolescence. [22] The limit on deductible business gifts is A. $25 per gift per year. B. No limit. C. $25 per reciplent per year. D. $25 total per year. [19] Jim owns an apartment building with 10 identical units. He lives in one unit and rents the other nine to unrelated beginning April 1 of the current year. The total insurance premium was $2,000. Assume jim is a cash-basis, calendar-year taxpayer. What amount is jim's rental expense in the current year for the insurance policy? A. $270 B. $300 C. $1,800 D. $2,000 [20] On June 18, Year 2, Nancy sold 100 shares of A Corporation stock for $20 per share. Nancy's records relating to the stock sold are as follows: What are the character and the amount of Nancy's gain or loss? A. $250 short-term capital gain and $750 short-term capital loss. B. $250 long-term capital gain and $750 long-term capital loss. C. $250 short-term capital gain and $750 long-term capital loss. D. $250 long-term capital gain and $750 short-term capital loss. [21] Which of the following would cause an increase in the basis of an asset? A. Gift tax paid in respect of property acquired by gift. B. Casualty loss. C. Section 179 deduction. D. Exhaustion, wear and tear, and obsolescence. [22] The limit on deductible business gifts is A. $25 per gift per year. B. No limit. C. $25 per reciplent per year. D. $25 total per year