1)Bow Inc., a closely held corporation (not a PSC), has a $350,000 loss from a passive activity, $135,000 of active income, and $160,000 of portfolio income. How much is Bows taxable income? (Points : 5) ($55,000) $0 $135,000 $295,000 $160,000

2)Tranquil Corporation, a calendar-year corporation, has alternative minimum taxable income (before any exemption) of $1.28 million. The company is not a small corporation. If the regular corporate tax is $209,000, which of the following is Tranquil's alternative minimum tax? (Points : 5) $47,000 $209,000 $256,000 $1,280,000 None of the above

3)Hammer Corporation has E and P of $75,000. It distributes land with a fair market value of $60,000 (adjusted basis of $25,000) to its sole shareholder, Rodney. The land is subject to a liability of $20,000 that Rodney assumes. How does this information impact Rodney's taxable dividend or basis in the land? (Points : 5) Rodney has a taxable dividend of $60,000. Rodney has a taxable dividend of $40,000. Rodney has a taxable dividend of $35,000. Rodney has a taxable dividend of $20,000. Rodney's basis in the land is $25,000.

4)Pursuant to a plan of corporate reorganization adopted in the current year, Patrick exchanged 1,000 shares of Remodel Corporation common stock that he had purchased for $200,000 for 1,200 shares of Monarch Corporation common stock that have a fair market value of $400,000. As a result of the exchange, which of the following are Patricks recognized gain and his basis in the Monarch stock? (Points : 5) No recognized gain and basis of $200,000 No recognized gain and basis of $400,000 Recognized gain of $200,000 and basis of $400,000 Recognized gain of $200,000 and basis of $200,000 None of the above

5)Jessica and Dan formed a partnership. Jessica received a 50% interest in partnership capital and profits in exchange for contributing land (basis of $20,000 and a fair market value of $100,000). Dan received a 50% interest in partnership capital and profits in exchange for contributing $100,000 cash. Three years after the contribution date, the land contributed by Jessica is sold by the partnership to a third party for $200,000. How much taxable gain will Jessica recognize from the sale? (Points : 5) $50,000 $90,000 $100,000 $120,000 None of the above

6)Harold and Iris are married and live in Maine. In 1990, they purchased realty for $100,000 (Iris provided $80,000 and Harold $20,000) and listed ownership as joint tenants with right of survivorship. In the current year, Harold dies first when the realty is worth $500,000. Which is one result of these events? (Points : 5) Harold's gross estate includes $250,000. Harold's gross estate includes $100,000. Harold's gross estate includes $400,000. In 1990, Iris made a gift to Harold of $60,000. None of the above

7)In 1980, Sarah and Ted, mother and son, purchased land for $600,000 as joint tenants with right of survivorship. Of the $600,000 purchase price, Sarah provided $400,000 and Ted $200,000 (of which $100,000 had been received as a gift from Sarah). In the current year, Ted dies first when the land is worth $3,000,000. Which of the following must Ted's gross estate include as to the land? (Points : 5) $100,000 $200,000 $1,000,000 $2,500,000 None of the above

8)In the current year, Angie made a gift of stock (basis of $813,000; fair market value of $413,000) to her mother, Roberta. As a result of the transfer, Angie paid a gift tax of $60,000. Which of the following is Roberta's income tax basis in the stock? (Points : 5) $413,000 basis for gain and loss $443,000 basis for gain and loss $813,000 basis for gain and $413,000 basis for loss $843,000 basis for gain and loss None of the above