1. Sam's commercial fishing boat is completely destroyed by fire. Its FMV before the fire was $450,000 and Sam's adjusted basis in the boat was $250,000. He receives insurance proceeds of $415,000 and purchases a replacement boat for similar use one year later for $360,000. Howards Gain Recognized on this transaction is:

   		$165,000
   		$35,000
   		$55,000
   		zero
   		None of the Above

1.3334 points

QUESTION 51

1. The Investment interest expense deduction is deductible:

   		in full when paid
   		limited to net investment income
   		limited to portfolio income
   		limited to passive income
   		None of the above

1.3334 points

QUESTION 52

1. Which of the following sources has the highest tax validity?

   		Revenue Ruling
   		Revenue Procedure
   		Regulations
   		Internal Revenue Code section
   		None of these