1. True or False?

Andrew receives 5000 shares of non-qualified stock options valued at $20/share at the grant date as part of his executive compensation package.This will create a taxable event for Andrew at some point in the future.

2. George receives property to use in his business valued at $40,000 and $5,000 cash in exchange for giving up property with an adjusted basis of $41,000. The transaction qualifies for like kind exchange treatment. Based on this George will report how much current year gain as a result of this transaction ?

3. True or false

Tyco corporation pays their ceo $1.5 million in performance based compensation. Tyco may therefore claim $1.5 million compensation deduction for the CEO.

4. True or False

Julie received 1000 shares of restricted stock valued at 10 share on the grant date and the stock declines to 6 share on the vesting date of 12/31/2016. Julie decides not to sell the stock until it increases in value. Julie must recognize income in 1016 related to the restricted stock

5. Lisa has a business that reported a $29,000 Sec 1231 gain related to disposition of business assets in 2015. Lisa previously reported a Sec 1231 loss in 2010 of ($14,000). The amount of gain from this transaction subject to ordinary income in 2015 is:

-$0

-$2,000

-$4,000

-$10,000

-None of the above