70. Ben purchased an apartment building about 10 years ago, for $200,000. The building has been depreciated over the appropriate recovery period using the straight-line method. On December 31, 2014, the building was sold for $220,000, when the accumulated depreciation was $62,500. Ben is in the highest tax bracket; on his 2014 tax return, he should report: (Points : 1) Section 1231 gain of $20,000 and ordinary income of $62,500 Section 1231 gain of $62,500 and ordinary income of $20,000 Ordinary income of $82,500 Section 1231 gain of $20,000 and "unrecaptured depreciation" taxed at 25% of $62,500 None of the previous choices

Question 71. 71. In 2014, Tim sells Section 1245 property for $28,000 that he had purchased in 2008. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income? (Points : 1)

$7,000 $8,000 $13,000 $18,000 None of the previous choices are correct

Question 72. 72. Sally acquired an apartment building in 1999 for $150,000 and sold it for $410,000 in 2014. At the time of the sale, there is $65,000 of accumulated straight-line depreciation on the apartment building. Assuming Sally is in the 35 percent tax bracket for ordinary income, how much of her gain is taxed at 15 percent? (Points : 1)

None $65,000 $260,000 $325,000 $345,000

Question 73. 73. Casualty gains and losses from business or investment property: (Points : 1)

May be treated differently depending on whether the property has been held 1 year or less or has been held over 1 year. Are treated the same as casualty gains and losses from personal property. Are subject to the 10% of adjusted gross income limitation. Are not subject to the depreciation recapture provisions.

Question 74. 74. Terry has a casualty gain of $1,000 and a casualty loss of $5,400, before the $100 floor and before the adjusted gross income limitation. The gain and loss were the result of two separate casualties occurring during 2014 and both properties were personal-use assets. If Terry itemizes deductions on her 2014 return and has adjusted gross income of $25,000, what is Terry's gain or net itemized deduction as a result of these casualties? (Points : 1)

$5,300 itemized deduction, $1,000 capital gain $4,300 itemized deduction $1,800 itemized deduction $2,800 itemized deduction, $1,000 capital gain None of the previous choices

Question 75. 75. Simon sold investment property 2 years ago for $750. Simon's basis in the property was $300. Simon is receiving $150 per year from the buyer. Simon reports this income on the installment method. If Simon collects $150 in principal during the current year, how much gain should he report from the sale for the year? (Points : 1)

$0 $75 $90 $150 None of the previous choices

Question 76. 76. Perry acquired raw land as an investment in 1997. The land cost $60,000. In 2014, the land is sold for a total sales price of $120,000, consisting of $10,000 cash and the buyer's note for $110,000. If Perry elects to recognize the entire gain in the year of sale, what is his recognized gain in 2014? (Points : 1)

$50,000 $60,000 $100,000 $110,000 None of the previous choices

Question 77. 77. Perry acquired raw land as an investment in 2000. The land cost $60,000. In 2014, the land is sold for a total sales price of $120,000, consisting of $10,000 cash and the buyer's note for $110,000. Assume that Perry uses the installment method to recognize the gain and receives only the $10,000 down payment in the year of sale. How much gain should Perry recognize in 2014? (Points : 1)

$5,000 $5,833 $7,000 $9,000 None of the previous choices

Question 78. 78. Tim sells land to Brad for $90,000. Tim originally purchased the land for $50,000. Brad agrees to pay Tim 6 annual installments of $15,000 each. In year 3, Brad makes his 3rd installment of $15,000. How much taxable gain will Tim have in year three? (Points : 1)

$5,000 $6,667 $13,333 $15,000 All the taxable gain should be recognized in year one.

Question 79. 79. Which one of the following qualifies as a like-kind exchange? (Points : 1)

A chicken held by a farmer exchanged for medical services. A home owned and lived in by a taxpayer exchanged for a new personal residence. IBM stock exchanged for Exxon stock. A Dodge Ram pickup truck used in business traded in for a new Ford 250 pickup truck also intended for business use. None of the previously listed choices are like-kind property.

Question 80. 80. In January 2014, Keyaki Construction Company exchanged an old truck, which cost $53,000 and had accumulated depreciation of $16,000, for a new truck having a fair market value of $65,000. In connection with the exchange, Keyaki paid $32,000 in cash. What is the tax basis of the new truck? (Points : 1)

$37,000 $54,000 $65,000 $69,000 None of the previous choices