Q5 The exchange of shares of stock does not qualify for like-kind exchange treatment.

a) True b) False

Q9 There is no limit on the amount of capital losses that an individual may deduct against ordinary income.

a) True b) False

Q16 Terry has a casualty gain of $1,000 and a casualty loss of $5,500, before the $100 floor and before the adjusted gross income limitation. The gain and loss were the result of two separate casualties occurring during the current year and both properties were personal-use assets. If Terry itemizes deductions on her current year return and has adjusted gross income of $25,000, what is Terry's gain or net itemized deduction as a result of these casualties?

a) $5,300 itemized deduction, $1,000 capital gain b) $1,900 itemized deduction c) $1,800 itemized deduction d) $2,800 itemized deduction, $1,000 capital gain e) None of the above

Q17 Johnny owned a gas station with an adjusted basis of $300,000. After it was destroyed in a fire, he received $560,000 from the insurance company. Within the next year, he bought a new gas station for $500,000. What is Johnny's taxable gain and what is the basis in the new building?

a) $260,000; $500,000 b) $200,000; $300,000 c) $60,000; $300,000 d) $260,000; $300,000 e) $60,000; $500,000

Q18 Which of the following statements is correct with respect to the deferral provisions of the tax law?

a) The like-kind exchange provision is elective. b) The involuntary conversion provision is elective. c) The exclusion of gain on the sale of a personal residence is elective. d) Both the like-kind exchange and the involuntary conversion provisions are elective. e) None of the above.

Q19 Which one of the following qualifies as a like-kind exchange?

a) A chicken held by a farmer exchanged for medical services. b) A home owned and lived in by a taxpayer exchanged for a new personal residence. c) IBM stock exchanged for Exxon stock. d) A Dodge Ram pickup truck used in business traded in for a new Ford F-250 pickup truck also intended for business use. e) None of the above are like-kind property.