1.Sissie owns two items of business equipment. They both purchased in 2010 for $100,000, both have a seven-year recovery period, and both have an adjusted basis of $37,490. Sissie is considering selling these assets in 2014. One of them is worth $60,000, and the other one is worth $23,000. Because both items were used in her business, Sissie simply assumes that the loss on one will increase or reduce her business income. Is she correct? Explain.

2.Jingie owns two parcels of business land (section 1231 assets ). One parcel can be sold at a loss of $60,000, and the other parcel can be sold at a gain of $70,000. Jingie has no nonrecaptured section 1231 losses from prior years. The parcel could be sold at any time because potential purchasers are abundant. Jingie has a $35,000 short-term capital loss carryover from prior tax year and no capital assets that could be sold to generate long-term capital gains. Both land parcels have been held more than one year. What should jingie do based upon these facts? (Assume that tax rates are constant and ignore the present value of future cash flow.)

3.Copper Industries (a sole proprietorship) sold three