1.An individual donates artwork to San Francisco General Hospital. This was the only charitable contribution the taxpayer makes during the year. The artwork was purchased several years ago for $50,000; it is worth $140,000 at the time of the donation. The taxpayer's AGI is $160,000. Which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the artwork?

a.The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year.

b.The taxpayer deducts $48,000 in the current year and carries over $2,000 to the next year.

c.The taxpayer deducts $48,000 in the current year and carries over $92,000 to the next year.

d.The taxpayer deducts $50,000 in the current year and carries over $0 to the next year.

e.None of the above statements could be accurate with respect to the taxpayer's charitable contribution deduction.

2.A taxpayer donates land to his church. The taxpayer paid $55,000 for the land several years ago. It is worth $75,000 at the time it was donated. This was the only charitable contribution the taxpayer made during the year. If the taxpayer's AGI is $100,000, which of the following could be an accurate statement regarding the taxpayer's charitable deduction for the land?

a.The taxpayer deducts $55,000 in the current year.

b.The taxpayer deducts $50,000 in the current year and carries over $25,000 to the next tax year.

c.The taxpayer deducts $30,000 in the current year and carries over $25,000 to the next tax year.

d.The taxpayer deducts $30,000 in the current year and carries over $45,000 to the next tax year.

e.Both a. and d.

3.The Martins file a joint return. Their AGI is $375,800. The Martins report the following amounts on Schedule A: home mortgage interest, $12,920; real estate taxes, $5,100; and $7,000 of cash gifts to qualified charities. The amount the Martins will deduct from AGI for their itemized deductions is:

a.$23,160.

b.$13.746.

c.$18,584.

d.$25,020.

e.$21,491.

4.A cash-basis sole proprietor had the following cash receipts and disbursement for the year:

Net sales

$80,000

Cost of goods sold

40,000

Operating expenses

20,000

Employee payroll taxes

3,000

Dividend income

900

Interest income from a personal savings account

200

What is the amount of reported net profit reported on Schedule C?

a.$20,000

b.$40,000

c.$17,000

d.$15,000

e.$18,000

Allen owns land with an adjusted basis of $610,000, subject to a mortgage of $350,000.On April 1, Allen sold his land subject to the mortgage for $650,000 in cash, a note for $600,000, and property with a fair market value of $120,000. What is the amount realized?

a. $1,250,000

b. $1,370,000

c. $1,720,000

d. $1,820,000

e. None of the above is correct