Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of 43. $15,000 and a fair market value of $20,000. Th e land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda?

$55,000 a.

$60,000 b.

$52,500 c.

$57,500 d.

Bill Burns purchases furniture from his employer for $5,000 during 2012. Th e fair market value of the furniture 44. is $8,500. What is Bills basis in the furniture?

$5,000 a.

$8,500 b.

$12,500 c.

$2,500 d.

Bill Burns purchases furniture from his employer for $5,000 during 2012. Th e fair market value of the furniture 45. is $8,500. What amount, if any, must Bill include as income for 2012?

$0 a.

$5,000 b.

$7,500 c.

$3,500 d.

Doug Doolittle receives a nontaxable stock dividend of 20 shares of Edwards Corporation common stock with a 46. fair market value at distribution of $800. Doug previously owned 100 shares of Edwards Corporation common stock which he purchased three years ago for $6,000. The basis per share of the 20 shares of Edwards Corporation stock is:

$0 a.

$40 b.

$50 c.

$60 d.