e $5.000 O$10,000 $15.000 Mark for follow up Question 45 of 75 Zack purchased a
ID: 2602319 • Letter: E
Question
e $5.000 O$10,000 $15.000 Mark for follow up Question 45 of 75 Zack purchased a rental house for $250,000. He put down $50,000 cash and took out a mortgage for the balance of $200.000 At closing, he unpaid by the seller. What is Zack's basis in the rental house? $4,000 in points, $3,500 for transfer taxes and legal fees, and $8,500 for delinquent property taxes left O $250,000 o $257,500 O $262,000 o $266,000 ' Mark for follow up Question 46 of 75. Glenn has a rental house that was rented beginning January 1 in the current tax year. On January 1, the tenant X $1,200 security deposit plus $950 rent for January and $950 rent for the last month, whenever that occurs. The paid the 5950 monthly rent each of the remaining eleven months. How much rental income will Glenn report year? O $11,400Explanation / Answer
a) Answer 45 of 75:
Total expenses paid by Zack to acquire a better title from the seller will form the part of the cost.
Thus total cost = 250000+4000+3500+8500
= 266000
Thus option D is correct answer.
b) Answer 12 of 75
Since the amount of gain is $10000 and he is in 25% tax bracket. Thus, he would be taxed $10000 @ 25%
Thus, correct answer is A.
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