4. Carmen is a full-time accounting professor at a local, private university. Of the following items that she received in the current year, which one is partially taxable to her? a. Took several graduate-level liberal arts courses at her school at no charge, total value $7,500 b. Obtained a free membership at the university gym, total value $500 c. Employer paid 100% of her health insurance coverage, total value $6,000 d. Received a research grant from a corporation, total value $10,000 5. How do employees and the self-employed deduct unreimbursed business expenses in the current year? Employees For-AGI From-AGI For-AGI From-AGI Not Deductible For-AGI Self-Employed From-AGI For-AGI For-AGI From-AGI b. d. 6. Which of the following statements is false about deductions? a. Legitimate expenses of an illegal business are generally deductible. b. Business investigation expenses are fully deductible if you are in the same business as the one you are investigating, whether or not you undertake the new business. There is no deduction for political contributions. c. d. Hobby income is fully taxable, but hobby expenses are not deductible at all. 7. Mitch sold stock, which he had owned for five years and had a cost basis of $60,000, to Brian (his son) for S40,000. Brian held the stock for six months before selling it to his unrelated friend for $50,000. As a result of the sale, Brian will a. Report no gain or loss b. Report a $10,000 short-term capital loss c. Report a $10,000 short-term capital gain d. Report a $10,000 long-term capital loss e. Have his father report a $10,000 long-term capital loss