Tabitha sold land she had purchased three months earlier for use in her business. Her cost (and adjusted basis) in the land is $50,000. She incurred selling expenses of $4,000. The buyer paid $60,000 cash and assumed Tabitha's $20,000 mortgage on the property. What is the amount of Tabitha's gain, and where on Form 4797 will Tabitha report the sale?

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$26,000 on Part II.

$26,000 on Part I.

$30,000 on Part IV.

$30,000 on Part III.

2.

Which funds can be allocated to a designated Roth account?

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Employee after-tax contributions.

Employer-matching contributions.

Plan forfeitures.

Employee pre-tax contributions

3.

Which statement about qualified tuition programs (529 plans) is TRUE?

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	Taxpayers may contribute on behalf of a nondependent.
	Contributions are limited to $2,000 per student per year.
	Contributions are deductible for federal income tax purposes.
	Earnings grow tax-deferred but are always taxed at distribution