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2, Mary is 48 years old and in good health. She has two dependent children. Her husband died suddenly in 2016. She has gross income

2, Mary is 48 years old and in good health. She has two dependent children. Her husband died suddenly in 2016. She has gross income of $34,000, no deductions for adjusted gross income, and does not itemize deductions. Mary's taxable income for 2016 is:

a. $21,400

b. $21,850

c. $12,550

d. $34,000

e. $9,250

3, Eugenia and Victor are married. For 2016, Eugenia earned $35,000 and Victor earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugenia's itemized deductions are $7,400 and Victor's are $5,400. Assuming Eugenia and Victor do not live in a community property state, what is Eugenia's taxable income?

a.$23,550

b.$24,650

c.$27,600

d.$35,000

e.None of these choices are correct

4, Alan bought shares in Coca-Cola for $10,000 on November 15, 2015. On November 1, 2016, he sold the shares for $5,000. He has no other gains or losses in 2016. What does Alan report on his tax return?

a.$5,000 short-term loss

b.$5,000 long-term loss

c.$3,000 ordinary loss and $2,000 short-term carry-forward

d.$3,000 ordinary loss and $2,000 long-term carry-forward

5, On January 1, 1996, Donna bought a single family house to use as a rental. She paid $300,000 for the property and has claimed depreciation of $60,000 over the intervening years. She sells the house on January 1, 2016, for $400,000 incurring selling expense of $24,000. What is Donna's gain or loss?

a.$160,000 gain

b.$100,000 gain

c.$136,000 gain

d.$16,000 loss

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