Question
5) Keith purchased a home with $20,000 down payment and a $180,000 mortgage. What is his basis in the home? a) $20,000 b) $180,000 c)
5) Keith purchased a home with $20,000 down payment and a $180,000 mortgage. What is his basis in the home?
a) | $20,000 | |||||||||||||||||||||||||
b) | $180,000 | |||||||||||||||||||||||||
c) | $200,000 | |||||||||||||||||||||||||
D) | $160,000
6) Lucys grandmother purchased 100 shares of GE stock priced at $10/share in 1970. Lucy inherited the stock when her grandmother passed away this year. On the date of death, the stock was valued at $70/share. Lucy sold the stock 3 months later for $73/share. What is the amount of the gain must Lucy report on her tax return (ignoring trading costs)? A) $63,00 B) $300 C) $7,300 D) $7,000 7) In the scenario above, what is the nature of the gain reported by Lucy?
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