37. ABC Corporation purchased various items of depreciable tangible personal propertywith a total cost of $3.15 millionfor use in its business in 2020. Assume that ABC has taxable income (without regard to the Section 179 expense) of $290,500 this year. What is the maximum Section 179 deduction that ABC may claim in the current year?

A)

$420,000

B)

$150,000

C)

$290,500

D)

$3,150,000

38. During the current tax year, Jamie has a $13,000 short-term capital loss and a $14,000 long-term capital gain, both from the sale of securities. Jamie also has a $10,000 long-term capital gain from the sale of collectibles. Jamie, a single taxpayer, is in the 32% marginal income tax bracket. Which of the following accurately describes the result of these transactions?

A)

$1,000 long-term capital gain, taxed at 15%, and $10,000 collectibles gain, taxed at 28%

B)

$24,000 long-term capital gain, and a $3,000 net capital loss carryforward

C)

$11,000 long-term capital gain, taxed at 15%

D)

$14,000 long-term capital gain, and a $3,000 net capital loss carryforward

39. In a like-kind exchange, a loss

A)

may be recognized only by the taxpayer who pays boot.

B)

may be recognized without limitation.

C)

may not be recognized.

D)

may be recognized within certain limitations.

40. Which of the following statements regarding a deductible casualty loss incurred by an individual taxpayer is CORRECT?

A)

A loss arising from blackmail may be deducted.

B)

A $100 floor per occurrence must reduce a deductible loss.

C)

A loss resulting from a gradual or progressive event may be deducted.

D)

A loss resulting from a fire intentionally set by the taxpayer may be deducted.