In January, Charlie sold stock with a cost basis of $40,000 to his brother Allen for $30,000, the fair market value of the stock on the date of sale. Five months later, Allen sold the same stock through his broker for $45,000. What is the tax effect of these transactions? (Points : 5) Disallowed loss to Allen of $10,000; recognized gain to Charlie of $5,000 Disallowed loss to Charlie of $10,000; recognized gain to Allen of $15,000 Deductible loss to Charlie of $10,000; recognized gain to Allen of $15,000 Disallowed loss to Charlie of $10,000; recognized gain to Allen of $5,000 None of the above

During the year, Clara took a trip from Chicago to Rome. She was away from home for 20 days. She spent 6 days vacationing and 14 days on business (including the 3 travel days). Her expenses are as follows:

Airfare	$1,600
Lodging (20 days x $70)	$1,400
Meals (20 days x $120)	$2,400
Valet service (cleaning of laundry)	$160

Chris's deduction is: (Points : 5) $3,100. $4,360. $5,080. $5,560. None of the above