Question 4.4. All of the following characteristics are true of an incentive stock option with the exception of (Points : 4)

the option price must be equal to or greater than the stock's FMV on the option's grant date. the employee cannot own more than ten percent of the voting power of the employer corporation's stock immediately prior to the option's grant date. the option must be granted within ten years from the date the plan is adopted and the employee must exercise the stock option within ten years from the grant date. there is no limit to the value of the options that become exercisable to an employee in a single year.

Question 5.5. Brandon, a single taxpayer, had a loss of $48,000 from a rental real estate activity in which he actively participated. He also had $27,000 of income from another rental real estate activity in which he actively participated. He acquired both investments in 2013. If Brandon has no other passive income or losses and has adjusted gross income of $84,000 before considering passive activities, how much loss from rental activities can he use to offset his nonpassive income? (Points : 4)

$21,000 $24,000 $25,000 $45,000

Question 6.6. Leonard owns a hotel that was damaged by a hurricane. The hotel had an adjusted basis of $1,000,000 before the hurricane. A recent appraisal determined that the hotel's FMV was $1,500,000 before the hurricane and $700,000 afterwards. Leonard received insurance proceeds of $500,000. His AGI is $60,000. What is the amount of his deductible casualty loss? (Points : 4)

$293,900 $300,000 $793,900 $800,000