QUESTION 1 Stanley operates a restaurant as a sole proprietorship. Which of the following items are capital assets in the hands of Stanley? The restaurant's tables and chairs. A portable sound system used to play "theme music" for the restaurant. The restaurant building that is an asset of the sole proprietorship. An interest-bearing savings account used to keep the restaurant's excess cash. QUESTION 2 15 po Carlos, who is single, sells his personal residence on August 2, 2019, for $600,000 (the buyer paid $200,000 in cash at closing and signed a note for the other $400,000). In addition, the buyer assumed a mortgage of $150,000 on the house. His adjusted basis in the house he sold was $225,000 and had owned and lived in the home for 8 years. Carlos pays realtor's commissions of $30,000. (a) Calculate Carlos's amount realized and realized gain from the sale of the residence. (b) Calculate Carlos's recognized gain. Be sure to show the amount of gain, if any, that Carlos may exclude under Section 121. (c) How much gain would Carlos recognize if he were married filing a joint tax return? (d) Carlos purchases another residence on December 6, 2019, for $385,000. What is Carlos's basis in his new residence? Be sure to label each answer clearly and show every calculation that you make so you can receive any applicable partial credit. NA PATRA 21 Onta Arial Save All Answers and submit. Click Save All Answers to save all answers