Please Answer Following MCQs with explainations

5) A taxpayer purchased 100 shares of Eastern Corp. stock for $18,000 on April 1 of the prior year. On February 1 of the current year, 50 shares of Eastern were sold for $7,000. Fifteen days later, the taxpayer purchased 25 shares of Eastern for $3,750. What is the amount of the taxpayer's recognized gain or loss?

A. $0

B. $500

C. $1,000

D. $2,000

.

8) As a way to stimulate investment in small businesses (and, in turn, the economy), simplify tax compliance, and reduce the burden of recordkeeping for depreciation purposes, the federal tax code permits businesses to make a _____________ election to immediately expense certain New and Used depreciable property used in the business, instead of capitalizing and depreciating it.

A. MACRS

B. Section 179

C. Double Declining Balance

D. Emergency Economic Write-Off

10) Geo wants to take bonus depreciation on equipment he placed in service in 2021. What percentage of the cost of equipment can Geo deduct in 2021 as bonus depreciation?

80%

40%

60%

100%

25) If a grandfather sells an asset he originally acquired for $800 to his granddaughter for

$500, he cannot deduct the $300 loss, since it is a sale from ancestor to descendant. If

the granddaughter later sells the asset for $900, she only reports a _________ gain, since

grandfathers basis was $800.

$900

$500

$300

$100