Bob White sold land for $40,000 payable in four equal annual payment with 5% interest per year (his basis is $10,000). Compute the first year income.

12. The IRS audit officer and your client, an Indiana resident, disagree on tax deductible items. Explain your next steps, including the possibility of going to court.

13. Bill Mea is a limited partner. His LP K-1 shows a ordinary loss of $20,000. His basis in the LP is $30,000 as is his investment. Explain the tax consequences.

14. Tex Us owns an apartment that he bought for $500,000 and started renting on April 1, 2018.

A. Show his depreciation for 2018 and 2019, and the adjusted basis.

B. He sold the apartment on Jan. 1, 2020 for $600,000. Calculate the result