On February 16, 2005, Irene bought a building for $500,000. She sold it on March 10, 2016 for $470,000. Total accumulated depreciation is $100,000. How much of the gain on the sale is subject to the 25% capital gain rate? $100,000. $70,000. $400,000. $470,000. None of the above. On June 1, 2015, Irene places in service an automobile that cost $21,000. The car is used 100% for business use. Determine the cost recovery deduction for 2016 assuming he does NOT use bonus depreciations. $12, 160. $4, 200. $11, 060. $3, 160. None of the above. Sam operates a variety store as a sole proprietorship. Which of the following items are capital assets in the hands of Sam? The vacant lot next to his store that was purchased for use as a parking lot for his customers. Sixteen bicycles that have been in his inventory for over a year. A note receivable which was given to him by a customer in payment of the balance due on the customer's account at the store. A corporate bond in which Sam invested some of the store's excess cash. None of the above. Sandra acquired a passive activity several years ago. Until 2016, the activity was profitable. In 2016, the activity produced a loss of $100,000. Sandra had no passive income in 2016, but she had $10,000 of wages. How much is her suspended loss from the activity for 2016? $90,000 $100,000 $0. $10,000 None of the above. Shontelle received a gift of income-producing property with an adjusted basis of $50,000 to the donor and fair market value of $40,000 on the date of gift. Shontelle subsequently sold the property for $45,000. What is the recognized gain or loss? $0. $5,000. ($6,000). ($5,000). None of the above