E brenda baines sells land to carla chandler for

e.
Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted 43.
basis of $15,000 and a fair market value of $20,000. The land was subject to a $25,000 mortgage which
Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda?
$55,000 a.
$60,000 b.
$52,500 c.
$57,500 d.
Bill Burns purchases furniture from his employer for $5,000 during 2010. The fair market value of the 44.
furniture is $8,500. What is Bill’s basis in the furniture?
d.
Bill Burns purchases furniture from his employer for $5,000 during 2010. The fair market value of the 45.
furniture is $8,500. What amount, if any, must Bill include as income for 2010?
46.
stock with a fair market value at distribution of $800. Doug previously owned 100 shares of Edwards
Corporation common stock which he purchased three years ago for $6,000. The basis per share of the 20
shares of Edwards Corporation stock is:
47.
Corporation common stock. Freda purchased the 200 shares of common stock two years ago for $12,000.
On the date of distribution, the fair market value of the common stock was $75 per share and the fair
market value of the preferred was $100 per share. What is the new basis, per share, of the common stock?
$75.00 a.
$50.00 b.
$100.00 c.
$66.67 d.
Freda Freemont receives a nontaxable stock dividend of 30 shares of preferred stock on her Georgia 48.
Corporation common stock. Freda purchased the 200 shares of common stock two years ago for $12,000.
On the date of distribution, the fair market value of the common stock was $75 per share and the fair
market value of the preferred was $100 per share. What is the new basis, per share, of the preferred stock?

541 Testbank
Chapter 10
d.
George Greco gave Harold Hudson property which George acquired fi ve years ago for $15,000. At the 49.
time of the gift, the property’s fair market value was $35,000. Harold subsequently sold the property for
$40,000. What amount of gain did Harold realize?
d.
Kurt Kramer purchased stock fi ve years ago for $12,000 which he gave to Jim Jensen when its fair market 50.
value was $9,000. Subsequently, Jim sold the stock for $7,500. What is the amount of Jim’s loss on the
sale?
$3,000 a.
$1,500 b.
$4,500 c.
$2,000 d.
Kent Knobe gave Larry Lawson a gift having a fair market value of $133,000 on February 14, 2010. Kent