1 On May 20, 2019, Greg entered into an agreement to exchange an eight unit rental apartment building for a four unit rental apartment building The closing took place on August 20, 2019 at which time the transfers were completed Greg's adjusted basis for the eight unit building was $320,000 and the fair market value was $400,000 The fair market value of the four unit building, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction What, if any, is Greg's taxable gain a $120,000 b $80,000 c $48,000 d $40,000 e $0 2 On May 29, 2019, Greg entered into an agreement to exchange an eight unit rental apartment building for a four unit rental apartment building The closing took place on August 20, 2019 at which time the transfers were completed Greg's adjusted basis for the eight unit building was $320,000 and the fair market value was $400,000 The fair market value of the four unit building, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction, and had an adjusted basis to the owner, Tom, of $420,000 What is Greg's basis in the eight unit building $320,000 $360,000 $400,000 $420,000 3 Gain, in certain cases, may be treated as capital gain in which of the following situations a Upon recognition of a nonbusiness bad debt b Upon the sale of inventory c On the sale of Section 1231 property d In none of the above situations 4 Which of the following is a capital asset as defined by the Code a Inventory held primarily for resale in the ordinary course of business b Supplies used in the ordinary course of business c Depreciable property and land used in a trade or business d Both a and b e None of the above is correct 5 On August 20, 2019 Tommy and Tammy, husband and wife, sold for $940,000 their (only) residence that they had purchased in 1999 for $400,000 paying $300,000 in cash with a $100,000 mortgage from ABC Bank They lived there the entire time they owned the home, and they made repairs to the electric and plumbing during their 10 year ownership totaling $40,000 What, if any, is their recognized gain or loss to be included on their jointly filed Form 1040 for 2019 a $400,000 b $0 c $500,000 d $40,000 e None of the above is correct

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1.On May 20, 2019, Greg entered into an agreement to exchange an eight-unit rental apartment building for a four-unit rental apartment building. The closing took

1.On May 20, 2019, Greg entered into an agreement to exchange an eight-unit rental apartment building for a four-unit rental apartment building. The closing took place on August 20, 2019 at which time the transfers were completed. Greg's adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction. What, if any, is Greg's taxable gain?

a. $120,000

b. $80,000

c. $48,000

d. $40,000

e. $0

2.On May 29, 2019, Greg entered into an agreement to exchange an eight-unit rental apartment building for a four-unit rental apartment building. The closing took place on August 20, 2019 at which time the transfers were completed. Greg's adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction, and had an adjusted basis to the owner, Tom, of $420,000. What is Greg's basis in the eight-unit building?

$320,000
$360,000
$400,000
$420,000

3.Gain, in certain cases, may be treated as capital gain in which of the following situations?

a.Upon recognition of a nonbusiness bad debt

b.Upon the sale of inventory

c. On the sale of Section 1231 property

d.In none of the above situations

4. Which of the following is a capital asset as defined by the Code?

a. Inventory held primarily for resale in the ordinary course of business

b. Supplies used in the ordinary course of business

c. Depreciable property and land used in a trade or business

d. Both a and b

e. None of the above is correct.

5.On August 20, 2019 Tommy and Tammy, husband and wife, sold for $940,000 their (only) residence that they had purchased in 1999 for $400,000 paying $300,000 in cash with a $100,000 mortgage from ABC Bank. They lived there the entire time they owned the home, and they made repairs to the electric and plumbing during their 10-year ownership totaling $40,000. What, if any, is their recognized gain or loss to be included on their jointly filed Form 1040 for 2019?

a. $400,000

b. $0

c. $500,000

d. $40,000

e.None of the above is correct.