(33", MCQ-01996 Alice gifted stock to her son, Bob, in Year 5. Alice bought the stock in Year 1 for $8,300. The value of the stock on the date of gift was $6,400. Bob sold the stock in Year 7 for $7,800. What is Bob's recognized gain or loss on the sale in Year 7? $0 $500 loss O $1,400 gain $7,800 gain 136") MCQ-02355 Section 1250 recapture applies to which of the following? Section 1231 real property sold at a gain with accumulated depreciation in excess of straight line. Section 1231 personal property sold at a gain with accumulated depreciation. O Section 1231 real property sold at a gain with accumulated depreciation equal to straight-line depreciation. Section 1231 personal property sold at a loss. 448") MCQ-08651 Kuo sells land to his son, Karl, for $100,000. Karl gives Kuo $1,000 and an installment note for the balance of $99,000. Kuo's basis is $50,000. Karl pays Kuo $4,000 in Year 1. In Year 2, after paying Kuo $5,000, Karl sells the property for $70,000. Which of the following statements about this situation is correct? Kuo should report the entire gain of $50,000 in Year 1 because installment sales of depreciable property are not allowed between related parties. Kuo should report $2,500 gain in Year 1. o Kuo should report the entire gain of $50,000 in Year 1 because Karl disposed of the land within two years of purchase. o Kuo should report a $49,000 gain in Year 2. 152") MCQ-06906 Hogan exchanged business-use real property having an original cost of $100,000 and accumulated depreciation of $30,000 for business-use real property owned by Baker having a fair market value of $80,000 plus $1,000 cash. Baker assumed a $2,000 outstanding debt on the real property. What taxable gain should Hogan recognize? $0 O $3,000 O $10,000 O $11,000 (54) MCQ-06424 A taxpayer is trading real property used solely for business purposes for new real property to be used in his business. The real property originally cost $35,000 and he has taken $18,000 in depreciation. The old real property is currently worth $20,000 and the new real property the taxpayer wants in exchange is worth $22,000. The taxpayer has agreed to assume a liability of $2,000 in addition to the trade-in. What is the taxpayer's basis in the new real property received? O $15,000 O $17,000 O $19,000 O $22,000 (55") MCQ-02174 Marsha exchanged land in Florida that was used in her business for land in lowa that also was for use in her business. The land in Florida had an FMV of $52,700 and an adjusted basis of $40,000, and the land in lowa had an FMV of $57,700. Marsha also paid $5,000 cash in the transaction. What is Marsha's recognized gain on the transaction? $0 $5,000 O $12,700 $17,700