1.Jerry has two transactions involving the sale of capital assets during the year resulting in a STCL of $5,200 and LTCL of $2,400. As a result, Stella can offset A) $5,200 of ordinary income and have a LTCL carryforward of $2,400. B) $3,000 of ordinary income and have a $4,600 STCL carryforward. C) $3,000 of ordinary income and have a $2,200 STCL carryforward and $2,400 LTCL carryforward. D) $7,600 of ordinary income. 2. Garner has a NSTCL of $9,000 and a NLTCG of $5,500 during the current taxable year. After gains and losses are offset, Garner reports A) b) An offset against An offset against ordinary income Loss carryforward ordinary income Loss carryforward $ 3,000 $ -0- $ 3,000 $ 500 C) D) An offset against An offset against ordinary income Loss carryforward ordinary income Loss carryforward $ 3,500 $ -0- $ 3,000 $ 6,000 3. Marguerite and John have two children, ages 13 and 10. Their modified AGI is $120,500.What is their child tax credit? 4. Timothy and Alice, who are married with modified AGI of $90,000, are sending their daughter to her first year of college. Their total tuition and related payments during the year amounted to $13,000. In addition, their daughter received a $10,000 scholarship to cover tuition. They have not taken advantage of any other type of tax benefit related to educational expenses. What is their American Opportunity Tax credit? 5. Which of the following statements is not correct regarding qualifying nonbusiness energy property? A) The property is expected to remain in use for at least five years. B) The property must meet minimum energy standards. C) The taxpayer's basis in the property must be reduced by the credit. D) The credit is 30% of the qualified energy improvements and limited to $500. 6. A corporation has $100,000 of U.S. source taxable income and $300,000 of foreign source taxable income from countries X and Y for a total worldwide taxable income of $400,000. Countries X and Y levy a total of $60,000 in foreign taxes upon the foreign source taxable income. U.S. taxes before credits are $140,000. The foreign tax credit limitation is A) $35,000. B) $60,000. C) $80,000. D) $105,000. 7. A wage cap does not exist for which of the following self-employment taxes? A) OASDI B) FICA C) FUTA D) Medicare hospital insurance