QUESTION 5 Emrah purchased a corporate bond at its face amount of $5,000 on 1/1/2018. Under its terms, the bond pays 696 interest on 12/31 of each year of its 48 month term. On June 30, 2018, Emrah sold the bond for $5.225. He is a cash basis, calendar year taxpayer. What is the amount and character (if any) of any amounts related to the bond sale that must be recognized on his 2018 return? $0 interest income: $225 long-term capital gain $225 interest income: $0 capital gain $0 interest income: $225 short-term capital gain $150 interest income: $75 short-term capital gain QUESTION 7 Nancy purchased 200 shares of New Castle common stock directly from the company for $25,000 on 7/12/2017. At the time of the purchase, New Castle had $600,000 of paid-in-capital. On 6/30/2018, she sold all or her New Castle common stock for $17,500. Nancy: a cash basis, calendar year taxpayer; is single. What is the amount and character (if any) of her tax deduction for 2018? $7,500: short-term capital loss $7.500; long-term capital loss $0; nondeductible $7,500; ordinary loss QUESTION 8 Valerie owns a small catering business as a sole proprietorship. During 2018, her self-employment income from the catering business was $85.000. Valerie also works as an administrative assistant at the Magnolia Elementary School. During 2018, her wages from working at the school were $26,000. What is Valerie's self-employment tax for 2018? $9,733.69 $13,005 $14,468.66 $12,010.12