Which of the following items are included in the computation of the sole proprietorsh

h of the following statements about the tax effect of the sale is/are correct?

I.If James is an employee of Patti's, no income is recognized from the sale.II.If James is Patti's brother, James does not recognize any income from the sale.III.If Patti is an art dealer and she sold the painting to James because she needed cash quickly, James does not recognize any income from the sale.IV.If James owns 60% of Patti's company, James does not recognize any income from the sale.()

A、Only statement II is correct

B、Only statement III is correct

C、Only statements II, and III are correct

D、Only statements II, III, and IV are correct

E、Statements I, II, III, and IV are correct

Which of the following qualifies as a like-kind exchange of property

I.Commercial retail building and its land for an office building and its land.

II.Louisiana Oil, Inc.common stock for Louisiana Oil, Inc.corporate bonds.()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct

A、Statements I and III are correct

B、Only statement I is correct

C、Statements I, II and III are correct

D、Statements I, II, and IV are correct

E、Statements I, II, III, and IV are correct

Corporation bond with a face value of $10,000.The bond pays $1,000 a year in interest.Ward and June gift the bond to their son, Wally (age 19), on January 1, 2018.Wally is in the 12% tax bracket.The 2018 net tax savings for the family unit of Ward, June and Wally related to the transfer of the bond is.()

A、$0

B、$120

C、$200

D、$320

A、Taxpayer's only income consists of $24,000 in Social Security benefits

B、Taxpayer receives $12,000 in Social Security benefits, dividend income of $6,000, and municipal bond interest of $3,000

C、Taxpayer receives $10,000 in Social Security benefits, qualified pension plan benefits of $13,000, and municipal bond interest of $8,000

D、Taxpayer receives $20,000 in Social Security benefits and qualified pension plan benefits of $14,000

E、One-half of Social Security benefits are always taxable

is credit card.The credit card company agrees to reduce the debt to $9,000.Prior to the debt reduction, Milton's total assets were $40,000 and his total liabilities were $39,000.How much income must Milton recognize from the reduction of his credit card balance.()

A、0

B、$1,000

C、$2,000

D、$3,000

y Hilda's father and used for Hilda's living expenses, her father intends to include it in his gross income.

I.The Assignment of Income Doctrine prohibits the father from recognizing the $2,700.

II.Even if Hilda desired to gift the $2,700 to her father, Hilda must recognize the income she earned.()

A、Only statement I is correct

B、Only statement II is correct

C、Both statements are correct

D、Neither statement is correct.

00, Jamelle sells it subject to the mortgage to David for $1,000.What is Jamelle's realized gain or loss.()

A、$0

B、$1,000 gain

C、$5,000 gain

D、$6,000 gain

E、$7,000 gain