20) During 2015, Justin, a self-employed individual, paid the following amounts: Federal Income Tax State Income Tax Real Estate taxes on land in Europe State sales Tax State taxes paid in 2015 with 2014 tax return $5,000 3,000 400 600 400 What amount can Justin claim as taxes by itemized deductions from AGI? a. $3,000 b. $3,400 C. $3,800 d. $4,800 None of the above 21) Taxpayer exchanges a productive use machine, which has an adjusted basis of $9,000, for a new machine worth $6,000. In addition, the taxpayer receives cash of $5,000. What is the recognized gain or loss and the basis of the new machine? a. $0 and $9,000 b. $0 and $4,000 c. $2,000 and $6,000 d. $2,000 and $9,000 None of the above 22) Herbert purchased a residence on January 2, 2017 for $280,000. Herbert suddenly has to get a new job and sold his house 10 months later, on October 2, 2017 he sold his residence for $350,00. What is the amount of the gain he must recognize in 2017? a. $70,0000 c. $29,167 d. $40,833 None of the above 23) On Feb 16, 2004, rene bought a building for $500,000. She sold it on March 18, 2017 for $470,000. Total accumulated depreciation is $100,000. How much of the gain on the sale is subject to the 25% capital gain rate? a. $100,000 $70,000 c. $400,000 $470,000 None of the above