o Tina sells her personal use automobile for $20,000. She purchased the car thre
ID: 2597116 • Letter: O
Question
o Tina sells her personal use automobile for $20,000. She purchased the car three years ago for $35,00. Wha a. ($35,000) b. ($15,000) c. SO d. $15,000 7) David gives his daughter, Sarah, stock (basis of $7.000: fair market value of $6,000). If Sarah subsequently sells the stock for $10,000, what is her recognized gain or loss? a. $10,000 b. $4,000 c. $3,000 8) To qualify for the full § 121 exclusion. the residence must have been owned and used by the taxpaver as the principal residence for at least two a. years during the five-year period ending on the date of sale b, the taxpayer must not have already used the § 121 exclusion within the two years prior to the date of sale c. both (a) and (b). d. none of the above. 9) The maximum amount of the § 121 gain exclusion is: a. $200,000 for both single and married taxpayers b. $200,000 for a single individual and $400,000 for a married couple c.$250,000 for both single and married taxpayers. d. $250,000 for a single individual and $500,000 for a married couple. 10) During 2017, Justin and Jessica, a married couple, decided to sell their residence, which had a basis of $400,000. They had owned and occupied the residence for 10 years. They sold the house in June 2017 for $950,000. Broker's commissions and other selling expenses amounted to $40,000. What is the recognized gain? a. $950,000 b. $550,000 c. $510,000 d. $10,000 11) The tax law requires that capital gains and losses be separated from other types of gains and losses because a net capital loss is only deductible up to $3,000 per year. a. b. long-term capital gains may be taxed at a lower rate than ordinary gains. capital losses are not deductible both (a) and (b). c. d. 12) If a capital asset is sold at a gain, the holding period is important because a. gain is not recognized on the sale of capital assets held less than 18 months b. gain is not recognized on the sale of capital assets held longer than 18 months. c. short-term capital losses are not deductible d. the holding period (short-term or long-term)i or long-ternm capital gain has occurred. Page 2 of 5Explanation / Answer
6)Since the automobile is personal asset the loss will not be recognized so it is 0 option C
7)It is option C , 10000-7000=3000
8)option C
9)option D
We are supposed to solve 4 questions it multiple posted
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.