Please answer the multiple choice questions below. 1. All of the following are deferral provisions except: a. Sale of a personal residence b. Like-kind exchange c. Exchange of a life insurance contract for an annuity contract d. Property transfers pursuant to divorce proceedings e. All are deferral provisions 2. Which of the following is not a characteristic of a like-kind exchange? a. The holding period for like-kind property includes the holding period of the property surrendered. b. Receipt of boot can cause gain recognition up to the gain realized. c. Business realty can be exchanged for business personalty. d. Personal-use assets do not qualify for like-kind exchanges. e. All are like-kind characteristics. 3. How much does a taxpayer in the 35 percent tax bracket save by deferring a $1,000,000 gain for 3 years using a 6 percent discount rate for evaluation? a. $350,000 b. $294,000 c. $160,000 d. $56,000 e. None of the above 4. Cal exchanges office furniture (fair market value = $100,000; adjusted basis = $90,000) and a business auto (fair market value = $10,000; adjusted basis = $6,000) for fire retardant filing cabinets (fair market value = $110,000; adjusted basis = $80,000). How much gain or loss does Cal recognize on the exchange? a. 0 b. $4,000 gain on auto c. $10,000 gain on furniture d. $14,000 total gain e. None of the above