1. Cooper Industries sold a rack it owned for $55,000. It acquired the rack in 2018 for $110,000. Accumulated depreciation over the years was $70,000. How much of the gain, if any, is treated as Section 1245 ordinary income?

		$15,000
		$55,000
		$70,000
		$0

2. Which item listed below is a Section 1231 asset?

		Accounts receivable
		Machinery, buildings and land held in a business for more than one year.
		Investment in Goring Inc. common stock held for more than one year.
		Office supplies

3. Liana Amiri has the following transactions in 2021.

Long term capital gain: $14,000

Short term capital loss: ($4,000)

How does he report this on his tax return?

Q 2021?

		$10,000 LTCG
		$4,000 short term loss
		$14,000 LTCG and no loss
		$3,000 STCL

4. Mary sells her coin collection in 2021. She started the collection in 2012. She had a recognized gain on the sale of the collection of $24,000. Her taxable income for 2021 was $85,000. At what capital gains tax rate will she be subject to on the $24,000 gain?

		0%
		28%
		15%
		25%

5. Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10 years. Maria, his spouse, has lived there with Pedro for the full 10 years. He sells his house for a realized gain of $340,000. How much gain do Pedro and Maria recognize on their joint income tax return?

$250,000

$90,000

$340,000

$0

6. Susan received $2,300 of dividend income in 2021. At what tax rate will the dividend income be subject to?

Ordinary income rates.

25% tax rate

Long-term capital gain rates of 0%/15%/20%

28%

7. Sharon and Gray file a joint tax return and have $750,000 of taxable income in 2021. They had $50,000 of long-term capital gains. At what tax rate will they be taxed on their long-term capital gains?

		Ordinary income rates
		15%
		20%
		25%

8. Jason exchanged real estate on March 15, 2021, with the following information:

Adjusted basis of old asset: $14,000

Cash boot given: $2,000

Fair market value of new asset: $15,000

What is the basis of Jason's new real estate?

		$16,000
		$14,000
		$15,000
		$0

9. Louis owns a piece of land with a basis of $175,000. He sold it to his mother for $150,000. How much gain or loss does Louis recognize on the sale of the land?

		$175,000 gain
		$0
		$25,000 loss
		$175,000 loss

10. Dan bought a hotel for $2,600,000 in January 2017. In May2021, he died and left the hotel to Ed. While Dan owned the hotel, he deducted $289,000 of depreciation. The fair market value in May 2021 was $2,800,000. What is the basis of the property to Ed?

		$2,600,000
		$289,000
		$2,889,000
		$2,800,000.

11. On December 28, 2021, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. He originally purchased the stock for $89,000 on February 5, 2009. On January 10, 2022, he repurchased all 150 shares for $80,000. How much of the gain or loss does Kramer recognize in 2021 on the sale of the Lavender stock?

$12,000 loss

$77,000 loss

$0

$89,000 gain