For the current year, Brad and Janet, a married couple filing jointly, have a $120,000 long-term loss on the sale of qualifying Section 1244 stock, their only capital asset transaction for the year. Their adjusted gross income (AGI), before the loss, is $300,000. What is their AGI after taking into account the stock loss?

		$197,000
		$180,000
		$194,000
		$200,000

During its first year of operation, Q Corporation had a gross profit from operations of $170,000 and deductions of $260,000 before considering its dividend income or dividends received deduction. Q received dividends of $60,000 from a taxable domestic corporation in which Q owned 10 percent of the stock. Assuming its ownership of the dividend-paying corporations stock is not debt financed, what is Q Corporations net operating loss for the year?

		$60,000
		$30,000
		$69,000
		$72,000

X and Y formed a corporation on April 1 this year. In exchange for 50 shares of stock, X transferred equipment worth $60,000 (basis $15,000) subject to a mortgage of $10,000, which the corporation assumed. In exchange for 50 shares of stock, Y contributed land worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed. What is Ys recognized gain and basis in his stock after the exchange?

		GAIN BASIS $11,000. $0
		GAIN BASIS $0. $0
		GAIN BASIS $9,000. $9,000
		GAIN BASIS $61,000. $50,000

X and Y formed a corporation on April 1 this year. In exchange for 50 shares of stock, X transferred equipment worth $60,000 (basis $15,000) subject to a mortgage of $10,000, which the corporation assumed. In exchange for 50 shares of stock, Y contributed land worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed. What is the corporations basis in the equipment?

		$15,000
		$5,000
		$10,000
		$60,000