1. Celia's has owned and lived in her principal residence for 40 years. In November 2018 she is moved into a nursing home when her Adjusted Basis in the home was $100,000. For the next two years her daughter lived in her home, until it was then sold in February 2020 for $550,000. As a result Celia will have a taxable gain of:

   		zero
   		200,000
   		$300,000
   		$450,000
   		none of the above

1.3334 points

QUESTION 36

1. Sam has a Boot Factory with an Adjusted Basis in his hands of 250,000. He exchanges it for Bobs Boot Factory worth 500,000, and 50,000 cash. In this transaction Sam's Gain Recognized is:

   		$50,000
   		$300,000
   		$550,000
   		zero
   		None of the Above

1.3334 points

QUESTION 37

1. George purchases a piece of real estate for $100,000 cash and a nonrecourse mortgage of $900,000. George's real estate activities constitute an active business. This year the business suffers an operating loss of $190,000. As a result George can deduct:

   		Zero
   		$100,000
   		$150,000