QUESTION 5

1. Dennis, a calendar year taxpayer, owns a warehouse (adjusted basis of $190,000) which is destroyed by a tornado in October 2018. He receives insurance proceeds of $250,000 in January 2019. If before 2021, Dennis replaces the warehouse with another warehouse costing at least $250,000, he can elect to postpone the recognition of any realized gain.

   True

   False

QUESTION 6

1. For the year ended 1996, Harris had a salary of $42,000. Also, the following capital transactions transpired during the year:

   LTCG $15,000; LTCL ($5,000); STCG $5,000; STCL ($9,000)

   What is his AGI$

   	a.	$62,000
   	b.	$42,000
   	c.	$48,000
   	d.	$39,000