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