7. If a capital asset were purchased on May 9, 2010 and sold on February 24, 2011 for a gain and this were the only capital asset sold during the year, then the capital asset is treated as: (Points : 2)

a long-term asset and will be taxed using ordinary income tax rate. a long-term asset and will be taxed using capital gains rate. a short-term asset and will be taxed using ordinary income tax rate. a short-term asset and will be taxed using capital gains rate.

Question 8.8. During 2011, Anton was entirely supported by his three daughters, Dolly, Carol, and Isabel who provided support for him in the following percentages: Dolly 8 percent Carol 45 percent Isabel 47 percent Which of the daughters may be allowed to claim her father as a dependent, assuming a multiple support agreement exists? (Points : 2)

Carol or Isabel Dolly Dolly or Carol None of these

Question 9.9. Which of the following statements is not correct with respect to the taxation of capital gains? (Points : 2)

All of the above are correct statements. In any year, only $3,000 of net capital losses can be deducted against ordinary income. Long-term gains have preferential tax rates of zero percent and 15 percent. Short-term capital gains have preferential tax rates.

Question 10.10. Alberta and Louis, ages 66 and 64 respectively, filed a joint return for 2011. They provided all of the support for their blind 19-year-old daughter, who had no gross income. They also provided the total support of Louis's father, who is a French citizen and life-long resident of France. How many exemptions may they claim on their 2011 tax return? (Points : 2)

5 2 3 None of these