QUESTION 21

1. Joyce, a farmer, has the following events occur during the tax year. Which of the events qualify as an involuntary conversion under Section 1033 (nonrecognition of gain from an involuntary conversion)?

		Her farm tractor is hauled to the city dump because it is worn out.
		She burns her barn because it became infested with termites over the course of 20 years.
		Her personal residence, adjusted basis of $100,000, is condemned to make way for an interstate highway. She recovers condemnation proceeds of $175,000.
		She sells 10 acres of pasture land at a loss of $40,000 because she has reduced the size of her dairy herd due to a reduction in milk prices.
		None of the above.

QUESTION 25

1. Adam Exchanges a shoe factory, Fair Market Value 280,000. and Adjusted Basis of 100,000, which is subject ot a Mortgage of 70, 000 for Brads shoe factory which has a Fair Market Value of 500,000 and is subject to a mortgage of 310,000 and 20,000 in cash. Each party assumes the mortgage on the property they are receiving in the exchange; Adams Gain Realized is:

		180,000
		20,000
		500,000
		zero
		None of the above

QUESTION 30

1. Geneva receives $10,000 cash distribution from the EFG Partnership. Immediately before the distribution, Geneva's adjusted basis for her partnership interest is $90,000. Geneva's basis in the partnership is now:

		$10,000.
		$80,000.
		$90,000.
		$100,000.
		None of the above.

QUESTION 31

1. Kay, an accrual basis taxpayer, was short of cash and did not pay her December 2019 business maintenance bill until 2020. Which of the following statements is correct?

		If the maintenance bill is paid by August 15, 2020, it can be deducted on the 2020 Federal return.
		If the maintenance bill is paid at any time in 2020, it must be deducted on the 2020 Federal return.
		Regardless of when the maintenance bill is paid, it should be deducted on the 2019 Federal return.
		If the maintenance bill is paid on October 14, 2020, it can be deducted on the 2020 Federal return.
		None of the above.

1 points

QUESTION 32

1. Sam operates a variety store as a sole proprietorship. Which of the following items are capital assets in the hands of Sam?

		The vacant lot next to his store that was purchased for use as a parking lot for his customers.
		Sixteen bicycles that have been in his inventory for over a year.
		A note receivable that was given to him by a customer in payment of the balance due on the customers account at the store.
		Publicly traded stock in which Sam invested some of the stores excess cash.
		None of the above.

QUESTION 34

Bob donates a painting which was a long term capital asset in his hands and had an adjusted basis of 100,000, and FMV of 500,000, to an art museum which displays the painting in its gallery. The art museum is a qualified public (501(c)3 charity. Bobs AGI is 3 million, and he makes no other contributions during the year. As a result bob can take a maximum charitable deduction of:

		$0.
		$100,000
		$500,000
		$150,000
		None of the above.