Question 1.1. (TCO E) For federal tax purposes, the gain from the sale of stocks and bonds is classified as _____. (Points : 5)

active income portfolio income passive income None of the above

2. (TCO D) What do we call the non-like-kind property received in a like-kind exchange? (Points : 5)

Boot
Shoe
Personal property
Gain

3-(TCO B) Bob and Cindy Smith paid the following medical expenses during 2016 (all in excess of reimbursement). Hospital and doctor bills: $800 Medicine and drugs: $700 Hospitalization insurance premiums: $6,000 Medicine and drugs (for dependent mother, age 71): $1,000 Assuming that the Smiths' adjusted gross income was $60,000, how much of a medical expense deduction may Bob and Cindy claim on their joint return?(Points : 5)

$4,000
$2,500
$4,330
$8,500

4-(TCO A) Frank Fox won $10,000 in a state lottery. He also lost $3,000 at the horse races. On his income tax return, he should report _____. (Points : 5)

$10,000 gross income
$7,000 gross income
$10,000 gross income and $3,000 deduction for adjusted gross income
$10,000 gross income and $3,000 itemized deduction

Question 5.5. (TCO F) If an expenditure is part business related and part personal, then _____. (Points : 5)

the entire expenditure is deductible for tax purposes
no part of the expenditure is deductible for tax purposes
the personal portion of the expenditure may be deductible for tax purposes
only the business-related portion of the expenditure is deductible for tax purposes

Question 6.6. (TCO E) Josh sold a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Josh received $60,000 cash and a painting with a fair-market value of $20,000 from the buyer. The buyer also assumed Josh's $25,000 loan on the equipment. Josh paid $5,000 in selling expenses. What is the amount of Josh's gain on the sale? (Points : 5)

$50,000
$105,000
$75,000
$60,000

Question 7.7. (TCO I) In October of 2016, Mike and Cathy Bennett sold their residence for $550,000. They purchased it in 2000 for $300,000. They made major capital improvements during their 10-year ownership, which totaled $50,000. What is their recognized gain? (Points : 5)

$200,000
$250,000
$0
$550,000

Question 8.8. (TCO D) For 2016, Cindy had a short-term capital loss of $4,000, a short-term capital gain of $1,900, a short-term capital loss carryover from 2015 of $700, a long-term capital gain of $1,800, and a long-term capital loss of $1,000. What is Cindy's deductible loss in 2016? (Points : 5)

$2560 $2,800 $2,000 $3,000

Question 9.9. (TCO A) Which of the following is not permitted to practice before the IRS? (Points : 5)

Attorney CPA Bookkeeping service Enrolled agent

Question 10.10. (TCO F) A nonbusiness bad debt is deductible for tax purposes as a(n) _____. (Points : 5)

short-term capital loss itemized deduction long-term capital loss ordinary business deduction