.(TCO D) Which of the following is true of a realized gain?(Points : 5)

Difference between the amount realized and the adjusted basis. Difference between the amount realized and the original basis The amount of proceeds you receive in exchange for an asset Not recognized

Question 2.2.(TCO D) Terry purchased an ice-cream machine for $14,000; the seller is holding the note. Terry paid $1,500 for the required wiring and installation. Terry has deducted depreciation on the ice-cream machine for 2 years totaling $2,400. Terry owes $8,000 to the Seller. What is Terrys adjusted basis in the ice-cream machine?(Points : 5)

$13,100 $11,100 $11,600 $21,100

Question 3.3.(TCO D) Sue inherited 50 shs of Zoll Industry stock from her Uncle Dave. Dave purchased the stock in 1986 at $20/sh. The stock was worth $50/sh when Dave passed away. What is Sues basis in the stock?(Points : 5)

$1,000 $2,500 $3,500 No basis.

Question 4.4.(TCO E) Which is true regarding the sale of a Personal Residence?(Points : 5)

Exclusions are available up to $250,000 for single filers if requirements are met. The gain is deferred if you purchase a home of equal or greater value. It is treated as a like-kind exchange. The gain is tax-free for taxpayers 55 or older.

Question 5.5.(TCO E) Which is true regarding a Like-Kind Exchange?(Points : 5)

The assumption of liabilities is not considered in the transaction. IRC Section 1040 states the rules for the like-kind exchange IRC Section 1031states the rules for the like-kind exchange Losses in a like-kind exchange receive immediate recognition.