QUESTION 15

1. Martell incurred a net long-term capital loss of $4,000 and no short-term capital gains or losses. Assuming his other income is $40,000, he will be able to deduct what amount?

   	a.	$2,400
   	b.	$4,000
   	c.	$2,000
   	d.	$3,000

QUESTION 16

1. If the taxpayer qualifies under 1033 (nonrecognition of gain from an involuntary conversion), makes the appropriate election, and the amount reinvested in replacement property is less than the amount realized, realized gain is:

   	a.	Recognized to the extent of realized gain.
   	b.	Permanently not subject to taxation.
   	c.	Recognized to the extent of the deficiency (amount realized not reinvested)
   	d.	Recognized to the extent of the amount reinvested in excess of the adjusted basis.