QUESTION 7 (Use Tax Tables for this question) Alex, who is a caddie at a country club, ask you to help her calculate her tax liability. She tells you about the following transactions: She earned $32,000 in wages from the country club, $100,000 of qualified business income from an Investment in a partnership. In addition, Alex won $5,000 in lottery scratch-off tickets and $20,000 gain on the sale of a stock. Alex purchased the shares on insider information (an illegal activity) and owned for stock 5 days. In June of the current year, Alex's inherited a 1,000 shares of IBM stock from his aunt. The stock FMV at the time of death was $47,000. His aunt's basis was $5,000. At the end of the year, the stock had appreciated to $75,000, but Alex did not sell his shares. He had itemized deductions that totaled $9,000. What is Alex's tax liability? A. $47,556 B. $34,116 C. $24,126 OD. $28,926 O E. None of the other responses. QUESTION 9 Paul, who is a doctor, is advised to invest in rental property. He becomes a 25% owner of US Realty LP. In year 1 Paul makes a capital contribution of $30,000. The partnership had net income of $500 in year 1(Paul shares of the gain is $125). In year 2, Paul makes an ad ditional capital contribution of $10,000. The partnership has a net loss $5,000 in year 2. (Paul's share is $1,250). In year 3. partnership distributes $20,000 to Paul. Also, in year 3, the partnership incurs losses of $20,000 (Paul's share is $5,000). What is Paul's At Risk Tax Basis at the start of year 4? A. $40,000 B. $20,125 C. $40,125 D. $10,500 E. $15,125