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?

A) Shhort-term capital gain

B) Ordinary income

C)

Long-term capital gain

D)

Qualified dividend

8) In the scenario described in question # 6 above, what is Lucys basis in the inherited stock?

A) $70/share

B) $10/share

C) $63/share

D) $73/share

9) If Lucys grandmother had gifted the stock to Lucy the day before she died (the stock price was $70/share), what would be Lucys basis in the GE stock?

A)		$70/share
B)		$10/share
C)		$63/share
D)		$73/share 10) If Lucy had received the stock by gift as described above, and Lucy had sold the stock 3 months later for $73/share, what is the amount of the gain Lucy must report on her income tax return? A) $6,300 B) $300 C) $7,300 D) $7,000