1.On January 1 of the current year, Jack Robins purchased a small shopping center at a cost of $1.5 million. On September 17, Jack sold the shopping center for $1.8 million. Jack claimed $45,000 of depreciation for the period in which he owned the property. Jack should report

Group of answer choices

a$45,000 of ordinary income and $300,000 of capital gain.

b$45,000 Sec. 1231 gain and a $300,000 capital gain.

c$300,000 of ordinary income and $45,000 of capital gain.

d$345,000 Sec. 1231 gain

2.

Jim Price sold a machine used in his business for $30,000. The machine cost Jim $50,000, and he had properly claimed accelerated depreciation totaling $20,000. Additionally, Jim had claimed a $10,000 Sec. 179 expense when the asset was purchased. Straight-line depreciation would have been $12,000. What is the amount of gain that should be reported under Secs. 1231 and 1245 (recapture)?

Group of answer choices

a$0 $10,000

b$0 $8,000

c$2,000 $8,000

d$10,000 $0

3.Jason owns a 55% capital interest in ABC Partnership. His brother owns 60% interest in XYZ Partnership. ABC sold a piece of property with an adjusted basis of $50,000 and a fair market value of $55,000 to XYZ for $45,000. What is ABC's recognized loss?

Group of answer choices

a$0

b$5,000

c$5,500

d$10,000

4.

In respect to an electing large partnership which of the statements is correct?

Group of answer choices

a.an electing large partnership separately reports its charitable contributions to the partners

b.for an electing large partnership Sec. 170 charitable contribution deduction is allowed at the partnership level in determining partnership taxable income, subject to a 10%-of-taxable-income limitation, similar to the limitation applicable to corporate donors

c..to make a large partnership election the partnership must have100 or more partners in thecurrent tax year

d.electing large Partnerships report income on Form 1065

5.In regard to payments to a retiring general partner, in liquidation of an interest, that are treated as distributive shares of partnership income or as guaranteed payments, which of the following is NOT correct?

Group of answer choices

a.These payments are subject to self-employment tax

b.Only a limited partner must report his/her share of partnership net earnings from self-employment

c.General partners are treated as self-employed taxpayers

d.Net earnings from self-employment are the sum of the partner's distributive share of partnership income and guaranteed payments received by the partner from the partnership

6.On July 1, Year 2, Fred Beerman, a sole proprietor, sold office equipment, which he had been using in his business, for $16,000.

Additional information is as follows:

Purchase date: January 1, Year 1

Original cost $20,000

Depreciation under MACRS 7,200

Straight-line depreciation would have been 6,000

Scott should recognize gain on the sale of the equipment in Year 2 as

Group of answer choices

a.$3,200

b.$1,200

c.$2,000

d. $2,000