During 2016, Justin, a self-employed individual, paid the following amounts: Federal income tax $5,000 State income tax 3,000 Real estate taxes on land in Europe 4 00 State sales taxes 600 State taxes paid in 2016 with 2015 tax return 400 What amount can Justin claim as taxes by itemizing deductions from AGI? $3,000. $3, 400. $3, 800. $4, 800. None of the above. Taxpayer exchanges a productive use machine, which has an adjusted basis of $9,000, for a new machine worth $6,000. In addition, the taxpayer receives cash of $5,000. What is the recognized gain or loss and the basis of the new machine? $0 and $9,000. $0 and $4,000. $2,000 and $6,000. $2,000 and $9,000. None of the above. Herbert purchased a residence on January 2, 2016 for $280,000. Herbert suddenly had to get a new job and sold his house 10 months later, on October 2, 2016 he sold his residence for $350,000. What is the amount of gain he must recognize in 2016? $0 $70,000 $29, 167 $40, 833 none of the above