Research in Federal Taxation

27. If the taxpayer $1033 qualifies under (nonrecognition from an involuntary conversion), makes the appropriate election, and the amount reinvested in replacement property is less than the amount realized gain is: a. Recognized to the extent of the deficiency. b. Recognized to the extent of realized gain. c. to the extent of the amount reinvested. d. Permanently not subject to taxation. e. None of the above. 28. Vertigo, Inc., has a 2016 net 1231 loss of s24,000, and had a s22,000 net 1231 gain in 2015. For 2016, Vertigo's net 1231 loss is treated as: a. Ordinary loss. b. Ordinary gain. c. Capital loss. d. Capital gain. e. None of the above. 29. Vertical, Inc, has a 2016 net 1231 gain of $30,000, and had a $10,000 net 1231 loss in 2015. For 2016, Vertical's net 1231 gain is treated as: a. $20,000 long-term capital gain and S10,000 ordinary loss. b. $30,000 capital gain. c. $30,000 ordinary gain. d. $20,000 long-term capital gain and $10,000 ordinary gain. e. None of the above. 30. Blue Company sold machinery for s55,000 on December 23, 2011. The machinery had been acquired on April 1, 2008, for $49,000 and had taken S34,800 of accumulated depreciation on the machinery as of the date of sale For 2011, what will Blue report for this transaction? $6,000 1231 gain, S40,800 1245 recapture gain. b. $6,000 1231 gain, S34,800 1245 recapture gain. c. $40,800 1231 gain, $0 1245 recapture gain. d. so 1231 gain, $40,800 1245 recapture gain, S6,000 1231 loss. e. None of the above. 31. Who is the current chairperson of the Senate Finance Committee? a. Orrin Hatch. b, Ron Wyden. c. Ben Bernanke. d, Max Baucus. e. Kevin Brady. 32. Which Circuit Court of Appeals has jurisdiction for Texas residents? a. First Circuit. b. Fifth Circuit. c. Ninth Circuit. d. Eleventh Circuit. e. Federal Circuit