Chapter 13 Quiz Sample

Chapter 13 Quiz Sample - Principles of California Real...

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Principles of California Real Estate Chapter 13 Quiz 1. Judy owns an apartment building worth $800,000. The building's adjusted cost basis is $770,000 and it has an outstanding $720,000 mortgage. She enters into an exchange with Bruce, who owns a shopping center worth $785,000. The shopping center is mortgaged for $700,000. Bruce also pays Judy $10,000 cash boot. What are Judy's actual and deferred gain? A. $45,000 and $15,000 B. $70,000 and $15,000 C. $30,000 and $10,000 D. $30,000 and $20,000 2. Which of the following could result in a tax advantage? A. A tax-free exchange B. An installment sale C. A depreciation deduction D. All of the above 3. Adam is holding a piece of unimproved property as an investment. Which of the following is he entitled to deduct for income tax purposes? A. Annual appreciation in the land's value B. A loss on the sale of the property C. A gain on the sale of the property D. None of the above 4. Which of the following properties could be depreciated for income tax purposes?
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Chapter 13 Quiz Sample - Principles of California Real...

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