I am taking a taxation Accounting class this summer, and my professor is online reading from the text book powerpoint. I am having a hard time with the calculation problems. I got these questions wrong on the test and would like to know how to do them so please help me! I appreciate all the help from everyone!

1. mr. lutz, a cash-basis taxpayer, purchased a 2 year fire insurance policy on his business, effective november 1, year 1. the policy required a down payment of $ 3000 that was made in year 1 and an additional premium payment of $2000 payable on july 1, year 2. what amount may mr.lutz deduct as insurance expense in year 2?

a. $0 b. $2,000 c. $2,500 d. $3,000

2. Michael was a compulsive gambler. During the year, he won $10,000 and lost $7,000 on illegal bets on pool games. Michael also won $18,000 and lost $20,800 on legal bets at the horse races. To pay for some of the gambling debts, Michael sold a gold necklace for $3,000 that he had bought in a pawn shop for $2,000. What is Michael's gross income from these transactions?

a. 1,200 b. 4,000 c. 29,000 d. 31,000

3. Emma bought an old drum from $25 at an auction. Later, she realized there was something loose inside. she shook the drum, and a jewel worth $2,000 rolled out. Emma showed the drum to her neighbor who collects musical instruments. The neighbor discovered that the drum was the one used on television by Bobby Joe, a famous country singer. It was worth $2,000. Bobby died later that year, and the value of the drum increased to $3,500. which of the following item must Emma include in her gross income for the year?

a. the value of the drum when she bought it.

b. the value of the jewel, the value of the drum when she bought it, and the appreciation of the drum up to its current fair market value.

c. the value of the jewel.

d. the appreciation on the drum.

4. Penny purchased 300 shares of stock in the diamond company on march 1, year1, for $3,200. Penny gave her friend marsha the Diamond stock as a gift on her birthday (Feburary 28, year 2). its fair market value on the date of the gift was $3,000. Marsha sold the stock for $3,800 on april 1, year 2. Marsha has a

a. $600 long term capital gain

b. $600 short term capital gain

c. $800 long term capital gain

d. $800 short term capital gain

5. Taxpayer B filed a declaration of estimated tax for the current year and paid $2,000 in four equal installments of $500. He had $6,000 withheld from his salary during the current year. The actual tax for the year was $12,000. B's current-year adjusted gross income decreased by $4,000 from the previous year. Taxpayer B had no other credits or payments. what is his underpayment of tax for each installment?

a. $0 b. $400 c. $700 d. $1,000

6. In year 1, Mr. and Mrs. Cameron, who file jointly , had a total tax liability of $40,000. In year 2, they will have a total tax liability of $50,000. Mr. Cameron has $10,000 withheld from his salary, and Mrs. Cameron has $6,000 withheld from her salary. what is the smallest quarterly installment that the Camerons can pay while avoiding any underpayment penalty?

a. $6,000 b. $12,500 c. $8,500 d. $10,000

7. Mrs. Sealy qualifies to file as head of household. she has one dependent daughter (age 12) who lives in her home. The daughter has no income. Mrs. Sealy is 50 years of age and not blind. What amount of gross income may she earn before she is required to file a return for 2013?

a. $8,950 b. $12,850 c. $16,750 d. $18,250