Tax Acct

15 questions accounting federal taxes asap & 100 accurate

1. Leonard lamberts commercial building which had an adjusted basis of $500,000, was partially destroyed by fire. the fair market value was $800,000 just before the fire and $600,000 immeditately after Leonard received $150,000 insurance proceeds and deducted a $50,000 casualty loss. what is leonard's basis in the building before nay repairs are made?

a.300,000

b.350,000

c.450,000

d.500,000

e.600,000

2.lenn sells 100 shares (basis of $5,000) of x corporation common stock on March 8 2010, for $4,000. On march 29, 2010 lenn purchases 50 shares of x common stock for $2,500. lenn's recognized loss on the sale is:

a.$1000

b.$500

c.$1500

d.$0

3. in 2010 allen sold an asset which cost $70,000. allen incorrectly claimed $40,000 depreciation over a five year period. he should have claimed $50,000 depreciation. what was the adjusted basis when sold?

a. $0

b. $20,000

c. $30,000

d. $50,000

e. $70,000

4.which of the following items is not a reduction to the basis of an asset?

a. depreciation

b. assessments for maintenance of sidewalks

c. cash rebate from manufacturer

d. casualty losses

5. james sold property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $150,000. the property had cost $250,000 and he had made improvements of $50,000. depreciation of $100,000 has been claimed and selling expenses were $20,000. what is the amount of gain?

a. $100,000

b. $200,000

c. $250,000

d. $280,000

e. $330,000

6.brian receives a nontaxable stock dividend of 20 shares of y corporation common stock with a fair market value at distribution of $800. brian previously owned 100 shares of y corporation common stock which he purchased 3 years ago for $6,000. the basis per share of the 20 shares of y corporation stock is:

a. $0

b. $40

c. $50

d. $60

7.smith gave harold hudson property which smith acquired five years ago for $15,000. at the time of the gift, the...