Brian Brewster sold property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $150,000. The property had cost $250,000 and he had made improvements of $50,000. Depreciation of $100,000 has been claimed and selling expenses were $20,000. What is the amount of gain?

a. $100,000

b. $200,000

c. $250,000

d. $280,000

e. $330,000

Leonard Lambert's commercial building, which had an adjusted basis of $500,000, was partially destroyed by fire. The fair market value was $800,000 just before the fire and $600,000 immediately after. Leonard received $150,000 insurance proceeds and deducted a $50,000 casualty loss. What is Leonard's basis in the building before any repairs are made?

a. $300,000

b. $350,000

c. $450,000

d. $500,000

e. $600,000

Lem Lumberjack sells 100 shares (basis of $5,000) of Redwood Corporation common stock on March 8, 2013, for $4,000. On March 29, 2013, Lem purchases 50 shares of Redwood Corporation common stock for $2,500. Lem's recognized loss on the sale is:

a. $1,000

b. $500

c. $1,500

d. $0

In 2013, Allen Anders sold an asset which cost $70,000. Allen incorrectly claimed $40,000 depreciation over a five-year period. He should have claimed $50,000 depreciation. What was the adjusted basis when sold?

a. $0

b. $20,000

c. $30,000

d. $50,000

e. $70,000