(1pts) 4) Kirby, a single taxpayer, has taxable income of $40,000 and is in the 12% tax bracket. During 2020, she had the following capital asset transactions: $11,000 10,000 2,000 Long-term gain from the sale of a coin collection Long-term gain from the sale of a land investment Short-term gain from the sale of a stock investment Kirby's tax consequences from these gains are as follows: a. (5% * $10,000) + (12% x $13,000). b. (12% * $13,000) + (28% x $11,000). c. (0% x $10,000) + (12% x $13,000). d. (12% x $23,000). b d 5) Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8% note for (1pts) $100,000. The note was to be paid over a five-year period. When the balance on the note was $80,000, Jewel began having financial difficulties. To accelerate her cash inflows, Jewel agreed to accept $60,000 cash from Harold in final payment of the note principal. a. Harold must recognize $20,000 ($80,000 - $60,000) of gross income. b. Harold is not required to recognize gross income but must reduce his cost basis in the land to $130,000 e. Harold is not required to recognize gross income since he paid the debt before it was due. d. Jewel must recognize gross income of $20,000 ($80,000 - $60,000) from discharge of the debt. NE 5) Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8% note for (1pts) $100,000. The note was to be paid over a five-year period. When the balance on the note was $80,000, Jewel began having financial difficulties. To accelerate her cash inflows, Jewel agreed to accept $60,000 cash from Harold in final payment of the note principal. a. Harold must recognize $20,000 ($80,000 - $60,000) of gross income. b. Harold is not required to recognize gross income but must reduce his cost basis in the land to $130,000. c. Harold is not required to recognize gross income since he paid the debt before it was due. d. Jewel must recognize gross income of $20,000 ($80,000 - $60,000) from discharge of the debt. a b 6) . Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her (1 pts) deceased husband in 10 installments of $17,500 cach. Her husband had paid premiums of $60,000 on the policy. In the first year, Carin collected $17,500 from the insurance company. She must include in gross income: a. So. b. S2,500 c. $10,000. d. $25,000 b d