1. In the current year, Janes mother died and willed her a ring. The rings fair market value at the mothers date of death was $20,000. Six months after her death, the ring was worth $22,000. Janes mother had purchased the ring for $15,000 five year prior to her death. Assuming the estates executor did not make a special election, what is Janes basis in the ring?

   		$20,000
   		$0
   		$15,000
   		$22,000

2. In Year 5, an earthquake severely damaged Fred's home. The area was declared a federal disaster. Fred's home was valued at $210,000 before the earthquake but only $140,000 after the earthquake. The home's cost basis was $110,000 and it was not insured. Fred's adjusted gross income (AGI) was $90,000 in Year 5 and $180,000 in Year 4. Assume his marginal tax rate for the deduction was 22% in Year 5 and 32% in Year 4. What is the maximum tax benefit that Fred can derive from the casualty loss?

   		$16,608
   		$0
   		$13,398
   		$13,420
   		$16,640

3. A sole proprietor owned an office building with a cost of $300,000 and accumulated depreciation of $40,000, using modified accelerated cost recovery system (MACRS) straight-line depreciation. In the current year, she sold the building for $320,000. What is the unrecaptured Section 1250 gain from this sale, if any?

   		$40,000
   		$0
   		$20,000
   		$60,000