6."Exchanged basis" is a term commonly applied in situations whereby a taxpayer has acquired property through a "like-kind' exchange. (True/False).

7.Under current law, when an investor dies (in a year other than 2010) the beneficiary of his property

a.has a basis measured by the property's fair market value on the date of death

b.must waive any alternative valuation date for estate tax purposes

c.cannot realize a gain in terms of the property's value

d.pays only capital gain, not ordinary income, taxes on the appreciation of the property

8.Jim purchased land for $100,000. At the time of his death, the land had a fair market value of $150,000. The beneficiary of the land sells the land for $160,000. How much gain does the beneficiary have to recognize?

a.0

b.$10,000

c.$50,000

d.$60,000

9.Jake purchases stock for $5,000. After it appreciates in value to $10,000, he gives it to Joan. Joan turns around and sells the stock for $12,000. How much gain does Joan have to recognize?

e.$0

f.$2,000

g.$5,000

h.$7,000

10.Janet purchases land in a nearby town in July, 2018 for $15,000 and resells the same property for $27,400 in September, 2018. Upon the sale of this land

a.a long-term capital gain is realized, but basis must include, as part of its calculation, the amount paid by the seller of the property to Irene

b.a short-term capital gain of $12,400 is realized

c.the tax effect of the sale is such that ordinary income tax will be paid on $27,400 minus the original cost of the property plus any tax paid on the original down payment

d.no gain is realized until after twelve months have passed; however, ordinary income tax will have to be paid on the sum of $27,400 minus $15,000