- 20. In 2019, Hopson Corporation reported municipal bond income of $10,000 for financial reporting purposes. Which of the following adjustments will be necessary, in standard work- paper format, to eliminate this exempt income to arrive at taxable income?- a. b. Increase taxable income with a credit of $10,000/ Decrease taxable income with a credit of $10,000.1 Increase taxable income with a debit of $10,000.1 Decrease taxable income with a debit of $10,000.- c. d. A gain on the disposition of Sec. 1245 property is treated as ordinary income to the extent 13. of a. Depreciation allowed or allowable. b. Excess of the accelerated depreciation allowed or allowable over the depreciation figured for the same period using the straight-line method. Excess of the appreciated value over depreciation allowed or allowable using the straight- line method. d. The difference between the amount realized over the cost of the property. c. 9. Cameron and Colin form P.N.C. Corporation. Cameron transfers property (basis of $105,000 and fair market value of $90,000) while Colin transfers land (basis of $8,000 and fair market value of $75,000) and $15,000 of cash. Each receives 50% of P.N.C. Corporation's stock (total value of $180,000). As a result of these transfers:- a. b. Cameron has a recognized loss of $15,000, and Colin has a recognized gain of $67,000./ Neither Cameron nor Colin has any recognized gain or loss. Cameron has no recognized loss, but Colin has a recognized gain of $15,000.1 P.N.C. Corporation will have a basis in the land of $23,000.- c. d