1)A taxpayer sold for $250,000 equipment that had an adjusted basis of $220,000. Through the date of the sale, the taxpayer had deducted $40,000 of depreciation. Of this amount, $27,000 was in excess of straight-line depreciation. What amount of gain would be recaptured under Section 1245 (Gain from Dispositions of Certain Depreciable Property)?

a.$40,000

b.$27,000

c.$13,000

d.$30,000

2)In 2019, David, a single 18-year old taxpayer, received a salary of $3,600 and interest income of $1,800. He had $600 in itemized deductions. Calculate David's taxable income assuming he is (a) self-supporting and (b) a dependent of his parents.

3)Jack and Jill are a married couple with one dependent child. In 2019, their salaries totaled $105,000, and they suffered a capital loss of $10,000. They also received $2,000 of tax-exempt interest. They paid $12,000 in interest on home acquisition indebtedness of $200,000, state and local income and real property taxes of $12,000, and medical expenses of $3,500. They also contributed $5,000 to charity, and made a $10,000 deductible IRA contribution. On their 2019 Married Filing Joint tax return what is their (a) adjusted gross income; (b) their total itemized deductions; (c) the amount of their exemptions; and (d) their taxable income.

4)Wendy is a single taxpayer, whose salary was $62,000 in 2019. In that year, she also suffered a $6,000 short-term capital loss. Her itemized deductions for the year totaled $5,000. What are Wendy's 2019 (a) adjusted gross income; (b) taxable income; and (c) tax liability?