Rachel holds 110 shares of Argon Mutual Fund.She is planning to sell 90 shares.Her record of the share purchases is noted below.What could be her basis for the 90 shares to be sold for purposes of determining gain? \[\begin{array} { | l | c | c | } \hline & \text { Cost per Share } & \text { No. of Shares } \\ \hline \text { Purchase April 1, 2017 } & \$ 100 & 100 \\ \hline \text { Reinvested Dividends April 1, 2018 } & \$ 150 & 10 \\ \hline \end{array}\]

A) $9,000 B) $9,500 C) $9,409 D) Any of the above could be used as basis for the 90 shares sold. A) $9,000 B) $9,500 C) $9,409 D) Any of the above could be used as basis for the 90 shares sold.

Topaz Corporation had the following income and expenses during the current year: \[\begin{array} { l | r | } \hline \text { Revenues } & \$ 80,000 \\ \hline \text { Expenses } & 30,000 \\ \hline \text { Gains on sale of capital assets } & 5,000 \\ \hline \text { Losses on sale of capital assets } & ( 25,000 ) \\ \hline \end{array}\] What is Topaz's taxable income?

A) $30,000 B) $50,000 C) $55,000 D) $47,000 A) $30,000 B) $50,000 C) $55,000 D) $47,000

Coretta sold the following securities during 2019: \[\begin{array} { | c | c | c | r | r | } \hline & \text { Date Acquired } & \text { Date Sold } & \text { Sales Price } & \text { Basis } \\ \hline \text { A } & 6 - 15 - 2013 & 3 - 30 - 2019 & \$ 6,500 & \$ 12,500 \\ \hline \text { B } & 7 - 12 - 2019 & 10 - 1 - 2019 & \$ 2,000 & \$ 9,000 \\ \hline \mathrm { C } & 7 - 15 - 2018 & 6 - 21 - 2019 & \$ 14,000 & \$ 13,000 \\ \hline \mathrm { D } & 4 - 2 - 2014 & 12 - 29 - 2019 & \$ 36,000 & \$ 15,000 \\ \hline \end{array}\] What is Coretta's net capital gain or loss result for the year?

A) NSTCL of $3,000 and NLTCG of $15,000 B) $9,000 ANCG C) $0 D) $12,000 ANCG A) NSTCL of $3,000 and NLTCG of $15,000 B) $9,000 ANCG C) $0 D) $12,000 ANCG

Exam 21: Property Transactions: Capital Gains and Losses

Rachel holds 110 shares of Argon Mutual Fund.She is planning to sell 90 shares.Her record of the share purchases is noted below.What could be her basis for the 90 shares to be sold for purposes of determining gain? Cost per Share No. of Shares Purchase April 1, 2017 \ 100 100 Reinvested Dividends April 1, 2018 \ 150 10

(Multiple Choice)

4.9/5

(39)

Question 101

Gains and losses are recognized when property is disposed of by gift or bequest.

(True/False)

4.8/5

(43)

Question 102

Topaz Corporation had the following income and expenses during the current year: Revenues \ 80,000 Expenses 30,000 Gains on sale of capital assets 5,000 Losses on sale of capital assets (25,000) What is Topaz's taxable income?

(Multiple Choice)

4.9/5

(39)

Question 103

The holding period of property received from a decedent is based on the actual time the property is held by the decedent.

(True/False)

4.8/5

(35)

Question 104

If a capital asset held for one year or more is sold at a gain,the gain is classified as long-term capital gain.

(True/False)

4.8/5

(27)

Question 105

Courtney sells a cottage at the lake that the family had used for their summer vacations.The purchaser paid Courtney $100,000 and assumed the mortgage which had a principal balance of $50,000.Courtney had purchased the cottage five years ago for $170,000.Courtney will recognize

(Multiple Choice)

4.9/5

(32)

Question 106

Bad debt losses from nonbusiness debts are deductible as short-term or long-term capital losses depending on how long the debt was outstanding.

(True/False)

4.8/5

(29)

Question 107

Richard exchanges a building with a basis of $35,000,and subject to a liability of $25,000,for land with a FMV of $50,000 owned by Bill.Bill takes the building subject to the liability.What is the amount of Richard's realized gain?

(Multiple Choice)

4.8/5

(40)

Question 108

Sanjay is single and has taxable income of $23,000 without considering the sale of a capital asset in November of 2019 for $15,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain is

(Multiple Choice)

4.7/5

(38)

Question 109

Rita died on January 1,2019 owning an asset with a FMV of $730,000 that she purchased in 2010 for $600,000.Bert inherited the asset from Rita.When Bert sells the asset for $800,000 on August 20,2019,he must recognize a

(Multiple Choice)

4.9/5

(39)

Question 110

A single taxpayer realizes long-term capital gains in 2019.Her taxable income puts her in the 37% tax bracket.She will enjoy a substantial tax savings due to the 15% preferential tax rate that will apply to her adjusted net capital gain.

(True/False)

4.8/5

(33)

Question 111

Section 1221 of the Code includes a comprehensive list of assets properly classified as capital assets.

(True/False)

4.9/5

(43)

Question 112

Purchase of a bond at a significant discount will result in the investor recognizing a capital gain when the bond matures.

(True/False)

4.7/5

(36)

Question 113

Coretta sold the following securities during 2019: Date Acquired Date Sold Sales Price Basis A 6-15-2013 3-30-2019 \ 6,500 \ 12,500 B 7-12-2019 10-1-2019 \ 2,000 \ 9,000 7-15-2018 6-21-2019 \ 14,000 \ 13,000 4-2-2014 12-29-2019 \ 36,000 \ 15,000 What is Coretta's net capital gain or loss result for the year?

(Multiple Choice)

4.9/5

(31)

Question 114

Gain on sale of a patent by an inventor generally is ordinary income.

(True/False)

4.8/5

(43)

Question 115

Andrea died with an unused capital loss carryover of $3,300.The carryover

(Multiple Choice)

4.8/5

(35)

Question 116

Sergio acquires a $100,000 Ternco Corporation bond (5%,20-year bond)on January 1,2019 for $75,000.The bond had been issued on January 1,2017.If Sergio holds the bond to maturity,at redemption he will recognize

(Multiple Choice)

4.9/5

(42)

Question 117

A taxpayer acquires an asset through a nontaxable exchange of a capital asset.The holding period of the new capital asset begins with the exchange date.

(True/False)

4.8/5

(41)

Question 118

Melody inherited 1,000 shares of Corporation Zappa stock from her mother who died on March 4 of the current year.Her mother paid $30 per share for the stock on September 2,2005.The FMV of the stock on the date of death was $65 per share.On September 4 of the current year,the FMV of the stock was $70 per share.Melody sold the stock for $85 per share on December 3.The estate qualified for,and the executor elected,the alternate valuation method for these and other assets in the estate.An estate tax return was filed.What was Melody's basis in the stock on the date of the sale?

(Multiple Choice)

4.7/5

(39)

Question 119

Antonio owns land held for investment with a basis of $28,000.The city of Lafayette exercises the right of eminent domain and Antonio receives a payment of $48,000.What is Antonio's realized gain?

(Multiple Choice)

4.8/5

(34)

Question 120

Showing 101 - 120 of 136

Exam 21: Property Transactions: Capital Gains and Losses

Gains and losses are recognized when property is disposed of by gift or bequest.

Topaz Corporation had the following income and expenses during the current year: Revenues \ 80,000 Expenses 30,000 Gains on sale of capital assets 5,000 Losses on sale of capital assets (25,000) What is Topaz's taxable income?

The holding period of property received from a decedent is based on the actual time the property is held by the decedent.

If a capital asset held for one year or more is sold at a gain,the gain is classified as long-term capital gain.

Courtney sells a cottage at the lake that the family had used for their summer vacations.The purchaser paid Courtney $100,000 and assumed the mortgage which had a principal balance of $50,000.Courtney had purchased the cottage five years ago for $170,000.Courtney will recognize

Bad debt losses from nonbusiness debts are deductible as short-term or long-term capital losses depending on how long the debt was outstanding.

Richard exchanges a building with a basis of $35,000,and subject to a liability of $25,000,for land with a FMV of $50,000 owned by Bill.Bill takes the building subject to the liability.What is the amount of Richard's realized gain?

Sanjay is single and has taxable income of $23,000 without considering the sale of a capital asset in November of 2019 for $15,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain is

Rita died on January 1,2019 owning an asset with a FMV of $730,000 that she purchased in 2010 for $600,000.Bert inherited the asset from Rita.When Bert sells the asset for $800,000 on August 20,2019,he must recognize a

A single taxpayer realizes long-term capital gains in 2019.Her taxable income puts her in the 37% tax bracket.She will enjoy a substantial tax savings due to the 15% preferential tax rate that will apply to her adjusted net capital gain.

Section 1221 of the Code includes a comprehensive list of assets properly classified as capital assets.

Purchase of a bond at a significant discount will result in the investor recognizing a capital gain when the bond matures.

Gain on sale of a patent by an inventor generally is ordinary income.

Andrea died with an unused capital loss carryover of $3,300.The carryover

Sergio acquires a $100,000 Ternco Corporation bond (5%,20-year bond)on January 1,2019 for $75,000.The bond had been issued on January 1,2017.If Sergio holds the bond to maturity,at redemption he will recognize

A taxpayer acquires an asset through a nontaxable exchange of a capital asset.The holding period of the new capital asset begins with the exchange date.

Antonio owns land held for investment with a basis of $28,000.The city of Lafayette exercises the right of eminent domain and Antonio receives a payment of $48,000.What is Antonio's realized gain?

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

U.S. Taxation of Foreign-Related Transactions

an Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Deductions and Losses

Business Expenses and Deferred Compensation

Itemized Deductions

Losses and Bad Debts

Depreciation,cost Recovery,amortization,and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods,tax Credits,and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters