s. Which of the following statements is true? Bw Partnership earned taxable income of s1 40,000 for the year. Bryan is entitled to 50% of the profit s, but Bryan withdrew only $60,000 during the year. Bryan's gross income from the partnership for the year is $60,000. b) An exchange of a machine used for business purposes and land used for business purposes is eligible for like-kind exchange treatment under Section 1031 e) Judy is a cash basis attorney. In 2016, she performed services in connection with the formation of a corporation and received stock with a value of $4,000 for her services. By the end of the year, the value of the stock had decreased to $2.000. She continued to hold the stock. Judy must recognize $4,000 of gross income from the stock for 2016. d) In 2016, Tom's five-year old daughter, who Tom claims as a dependent on his tax return, earned S100 interest income from a bank account established for her by family members. Since Tom's daughter is claimed as a dependent on his tax return, Tom must include $100 interest income in his taxable income for 2016. 9. During 2016, Esther has the following transactions: Salary Interest income on Xerox bonds Gift from uncle $70,000 2.000 40,000 5,500 2,500 Contribution to traditional IRA Long-term capital loss