1.For 2020, Heidi, who is single has properly determined that her taxable income is $81,800, including $1,200 of unrecaptured 1250 gain and $5,000 of 0%/15%/20% gain. Compute Heidi's tax liability (hint use capital gain table)

2.Sara purchased a life insurance policy as an investment from her neighbor, Angela. Angela, the original policy holder had paid premiums of $12,000 before the sale. Sara paid Angela $16,500 to acquire the life insurance policy. Sara made additional payments of $5,000. When Angela died, Sara collected $50,000. How much of the policy proceeds is taxable to Sara?

3.XYK Realty LLC purchased an office building on Nov. 1. They paid $500,000 in cash and a case of wine valued at $40,000. They owned the wine for 2 years and originally paid $25,000. They obtained a mortgage of $10,000,000 and incurred closing costs of $125,000 as part of the transaction. What is XYK basis in the property?.

4.Sam and Fran are married with 3 dependent children. They file a joint return in 2020. Their salaries totaled $175,000. They earned taxable interest income of $3,600. Fran received a cash gift from her parents of $10,000. Sam inherited stock from his uncle. At the time of his uncle's death the stock was valued at $20,000. The uncle's original cost basis was $12,000. Sam sold the stock for $23,000 on December 30th and received the proceeds on Jan. 2nd. What is Sam and Fran's tax liability?