30. Clara purchased a necklace for 100 in 1963. In 2013, Clara gave the necklace to her granddaughter, Lacy. At the time of the gift, the necklace an appraised value of 850. In 2015, Lucy sold the necklace for 1,200. What is the amount and character of Lucys fain from the sale?

a. 350 ordinary gain

b. 350 long-term capital gain

c. 1,100 ordinary gain

d. 1,100 long-term capital gain

31. For individuals in the 10% and 15% brackets in 2015, the income from qualified dividends will be taxes at:

a. 0

b. 5%

c. 8%

D. 10%

32. On July 1, 2014m Marie purchased a ten-year 10,000 bond. The bond has a stated interest rate of 4%, payable annually on July 1. On June 2, 2015, 336 days from the last interest payment, Marie sold the bond. The selling price included how much accrued interest.

a. 32

b. 368

c. 400

d. 768

33. To be considered a trader in securities for tax purposes, the trading activity must meet three general requirements. Which of the following is NOT one of the three general requirements?

a. Activity must be substantial

b. Transactions must be for a large amount

c. Transactions must be regular and continuous

d. Transactions must be intended for short-term swings

.34. Which of the following, when paid to produce taxable investment income, is an investment expense deductible on line 23 of schedule A?

a. Commission paid on sales of stock

b. Cost of attending an investment-related seminar

c. Cost of investment advice

d. Investment interest expense

35. In 2012, Kyle bought stock in Frontier Corporation for 2,000. In 2013, he received a return of capital distribution of 100 as a partial return on his investment. In 2015 he sold the stock for 3,000. His basis in the stock is:

a. 3000

b. 2,100

c. 1,900

d. 2,000