Question
what answer is 1 to 5 please this is federal income taxes 1. Bob bought stock for $5,000 and sold it to his mother Annie
what answer is 1 to 5 please this is federal income taxes
1. Bob bought stock for $5,000 and sold it to his mother Annie for $2,000. How much of a loss can he report on his tax return on the sale.
a. None.
b. $2,000
c. $3,000
d. $4,000
2. Alice bought stock for $8,000 and sold it to her daughter Gina for $3,000. Several year later, Gina sold it for $9,000. How much gain will Gina report on her sale of the stock?
a. Zero.
b. $1,000
c. $3,000
d. $6,000
3. Edwin bought 100 shares of XYZ Inc. stock for $12,000 and sold all of it for $4,000 on March 10. He bought 40 shares of XYZ Inc. stock on March March 23 for $1,500. How much loss can he report from the sale on his tax return?
a. Zero.
b. $3,200.
c. $4,800.
d. $8,000.
4. Don bought 100 shares of XYZ Inc. stock for $10,000 and sold it for $6,000 on March 10. He bought another 100 shares of XYZ Inc. stock on March 23 for $6,100. What will his basis be in the 100 shares he bought on March 23?
a. $6,000.
b. $6,100.
c. $10,000.
d. $10,100.
5. Ralph owns a house in the Hamptons, a wealthy beach resort. He and his family and friends enjoy it for most of the year themselves, but he rents it out to a tenant for ten days in August for $3,500. His expenses related to the rental come to $1,000. Those are the only days during the year that he rents it out. How much income will Ralph include in his gross income from the rental activity?
a. Zero.
b. $2,500.
c. $3,500.
d. $4,500.
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