1. During 2019, Ral Corp. exchanged 5,000 shares of its own $10 par common stock for land with a fair market value of $75,000. As a result of this exchange, Ral should report in its 2019 tax return

a.

no gain

b.

$25,000 ordinary income

c.

$25,000 sec 1245 gain

d.

$25,000 sec 1231 gain

1. For Year 2, Quest Corp., an accrual-basis, calendar-year C corporation, had an $8,000 unexpired charitable contribution carryover from Year 1. Quest's Year 2 taxable income before the deduction for charitable contributions was $200,000. On December 12, Year 2, Quest's board of directors authorized a $15,000 cash contribution to a qualified charity, which was made on January 6, Year 3. What is the maximum allowable deduction that Quest may take as a charitable contribution on its Year 2 income tax return?

a.

$8,000

b.

$15,000

c.

$23,000

d.

$20,000

1. In 2019, Best Corp., an accrual-basis, calendar-year C corporation, received $100,000 in dividend income from the common stock that it held in an unrelated, less-than-20%-owned, domestic corporation. The stock was not debt-financed and was held for over a year. Best recorded the following information for 2019:

Loss from Best's operations

$(10,000)

Dividends received

100,000

Taxable income (before dividends-

received deduction)

$90,000

Best's dividends-received deduction on its 2019 tax return was

a.

$45,000

b.

$65,000

c.

$50,000

d.

$100,000