6. Joan gives an asset valued at $12,000 with a basis of $10,000 to Mary: Joan dies six-months later leaving an asset valued at $10,000 with a basis of $12,000 to Larry. What are Mary's' and Larry's bases in these stes? a. Mary-$12,000; Larry = $12,000 b. Mary - $12,000; Larry - $10,000 c. Mary - $10,000; Larry - $12,000 d. Mary - $10,000; Larry-$10,000 None of the above. 7. A business selle a machine used in its business for $18,000. It had purchased the machine 10 months earlier for $26,000. What is the amount and type of the $8,000 loss on the sale of the asset? a. Capital loss b. Section 1231 loss c. Section 1245 loss d. Ordinary loss None of the above 8. A corporation sells a machine used for 9 years in its business for $22.000. The machine originally cost $120,000 and was fully depreciated. Its gain will be treated as: a Capital gain b. Section 1231 gain c. Section 1245 recapture d. Section 1250 recapture c. None of the above 9. Eupene Forest sold the following assets stock acquired 5 years ago (cost SI0.000) for $15,000, business equipment held 3 years (cost $28.000; adjusted basis $22,000) for $30.000, inventory held 2 years (cost SI 1.000) for $14,000, and personal car, held 2 years (cost $8,000) for $12.000. What is the amount of Forest's Sec. 1231 vain or loss? a)S 2.000 b) 8.000 c)$20,000 d)$29,000 c) None of the above. 10. Dennis exchanges business really with a $50.000 adjusted basis for 55.000 cash and new business really with a $4.000 FMV What is the amount of gain recognized on the exchange SO b. 52.000 $1,000 d. 55.000 c. None of the above 11. Matthew owns a warehouse that is used in business while Pamela owns land. Matthew exchange the warehouse for the land, which will be held for investment The FMV of the warehouse is $200.000 (basis S120.000) and the warehouse is subject to a mortgage of $10,000, which is assumed by Pamela Matthew receives S10,000 cash and the land, which has a FMV of S150,000 (basis of S130,000 to Pamela), Pamela must recognize again of b 10.000 S000 None of the above