Question 38 2 pts Which of the following fringe benefits may not be excluded from gross income? Qualified employee discounts. Frequent flyer awards received by an employee as a result of airline travel on company business. The ticket costs were reimbursed by the employer. Employer-provided transportation, such as a van pool, used for commuting purposes All of the answers are excluded from gross income. Question 39 2 pts Which of the following expenses is deductible in the current year? A protestor of Chinese incurs travel expenses during a trip to China, when the purpose of the trip is to increase his understanding of the language and customs of China. A taxpayer takes a customer to lunch and discusses a business transaction immediately before the meat. A taxpayer provides theater tickets for a client and his wife as part of customer relations, the taxpayer is not present A businessman pays dues to an athletic Club when membership is used for business purposes Question 36 The basis in property inherited from a decedent may be determined as follows: The decedent's basis plus any inheritance tax paid on the increased value. The fair market value at the date of death. The fair market value at an alternate valuation date. The fair market value at the date of death or the fair market value at an alternative valuation date. Question 37 The limit on deductible business gifts is O $25 total per year. $25 per gitt per year $25 per recipient per year No limit 2 pts D Question 34 Ted owns 1,000 shares of common stock in Black Creek Corporation. In the current year, Ted received a 20% nontaxable stock dividend of additional shares of common stock. His basis in the original 1,000 shares was $24,000, and the Black Creek stock had a FMV of $15 per share on the date of distribution What is Ted's basis in the stock dividend from Black Creek? $0 $3,000 $4.000 O $4,800 Question 35 2 pts Terry, a taxpayer purchased stock for $12,000. Later, Terry sold the stock to a relative for $8,000 What amount is Terry's recognized gain or loss? $2.000 loss 50 $2.000 sain $4,000 sain