QUESTION 1 At what point do you calculate the gain/loss on an asset for tax purposes? A. Every year you must report your unrealized and realized gain/losses on your tax return. O B. Only in the year the asset is sold. O C. At any time the asset's fair market value changes. D. Only when the IRS asks for it. QUESTION 2 What is the formula for calculating a Gain or Loss from the sale of an asset? Hint: look at the slides O A. Basis of Cash or Property Received less Fair Market Value of Asset sold = Gain/(Loss) B. Amount Realized less Historical Original Unadjusted Basis = Gain/(Loss) C. Cash Received less Adjusted Basis = Gain/(Loss) O D. Amount Realized less Adjusted Basis = Gain/(Loss) QUESTION 3 Which of the following is not included in "Amount Realized" as discussed in the lecture? O A. Future verbal promises to pay for the item O B. Amount received by the seller from the buyer O C. Cash D. Fair Market Value of Property O E. Seller debt assumed by buyer