45.Bill Burns purchases furniture from his employer for $5,000 during 2017. The fairmarket value of the furniture is $8,500. What amount, if any, must Bill include asincome for 2017? a.$0b.$5,000c.$7,500d.$3,500 50.Kurt Kramer purchased stock five years ago for $12,000 which he gave to Jim Jensenwhen its fair market value was $9,000. Subsequently, Jim sold the stock for $7,500.What is the amount of Jim's loss on the sale? 55.On September 24, 2017, Walter Whistler gave property with a fair market value of$64,000 to Jim Jacobs. Walter's adjusted basis in the property was $49,000. Thetaxable gift was $50,000 and gift taxes paid on the property were $10,000. What isJim's basis in the property?
60.On January 1, 2017, Daniel Durrow owned rental property which had an adjustedbasis to him of $250,000. Daniel made the following expenditures during 2017:Ordinary painting of building$ 5,000Repair of roof section (useful life not appreciably extended)2,500Legal fees paid to defend title10,000Property taxes6,000Assessment for local street improvement (value of propertyincreased greatly)15,000Not considering depreciation, what is Daniel's basis in the property at year-end? 65.Losses between related parties are: a.always realized, but never recognized.b.always recognized, but never realized.c.always realized and recognized.d.never realized and recognized. 70.In 2013, Jane Jones pays $2,500 for 1,000 shares of ABC common stock. On August27, 2017, Jane purchases an additional 250 shares of ABC common stock for $600.On September 5, 2017, she sells the 1,000 shares purchased in 2013 for $1,800. Jane'sbasis in the shares of stock purchased on August 27, 2017 is:
75.Douglas Duke received a summer home from his father as a gift in 2017. The fairmarket value at the time of the gift was $90,000 (this was also the taxable gift), and ithad an adjusted basis to the father of $50,000. The father paid $9,000 in gift tax.What is Douglas's basis in the property? Chapter 11 Property Transactions: Nonrecognition of Gains and Losses MULTIPLE CHOICE QUESTIONS—CHAPTER 11 *Questions 41-46, 62-63, and 72-73 have been adapted from the IRS Examinations. 80.Ed Edmonds exchanged a business truck with an adjusted basis of $320,000 foranother business truck with a fair market value of $20,000, a boat with a fair marketvalue of $6,000, and $2,000 cash. What is the basis of the new truck?
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