6. In order to postpone income tax obligations as long as possible, retirement assets should be taken from which assets (or accounts) first? (Points : 1)

A. Section 457 accounts of government employees since no penalties apply once the employee is separated from employment. B. Section 401(k) and nonprofit 403(b) plans because the age 55 separation rule may apply. C. Traditional IRAs since a taxpayer must be at least age 59 1/2 to obtain penalty-free withdrawals. D. Roth IRAs since no required minimum distribution rules apply. E. Taxable accounts.

7. Yvonne exercises incentive stock options (ISOs) for 100 shares of Apple Corporation stock at the option price of $100 per share on May 21, 2015, when the fair market value is $120 per share. She holds the stock for only seven months and sells the shares for $140 per share. Determine the recognized gain on the sale and classify it as capital or ordinary. (Points : 1)

A. $2,000 ordinary income and $2,000 STCG. B. $2,000 ordinary income and $2,000 LTCG. C. $4,000 ordinary income. D. $4,000 LTCG. E. None of the above