ACC 307 help A Guide to career/Snaptutorial ACC 307 help A Guide to career/Snaptutorial | Page 6

4.
The ceiling amount and percentage for 2013 for the Medicare portion
of the self-employment tax are:
5.
If the taxpayer qualifies under § 1033 (nonrecognition of gain from
an involuntary conversion), makes the appropriate election, and the
amount reinvested in replacement property is less than the amount
realized, realized gain is:
6.
Mary sells her personal use automobile for $20,000. She purchased
the car two years ago for $17,000. What is Mary’s recognized gain or
loss? It increased in value due to its excellent mileage, yet safe
design.
7.
Neal and his wife Faye reside in Texas, a community property state.
Their community property consists of real estate (adjusted basis of
$800,000; fair market value of $6 million) and personal property
(adjusted basis of $390,000; fair market value of $295,000). Neal dies
first and leaves his estate to Faye. What is Faye’s basis in the
property after Neal’s death?
8.
Which of the following exchanges qualifies for nonrecognition
treatment as a § 1031 like-kind exchange?
9.
Lynn purchases a house for $52,000. She converts the property to
rental property when the fair market value is $115,000. After
deducting depreciation (cost recovery) expense of $1,130, she sells
the house for $120,000. What is her recognized gain or loss?
10.
Hiram is a computer engineer and, while unemployed, invents a
switching device for computer networks. He patents the device, but
does not reduce it to practice. Hiram has a zero tax basis for the
patent. In consideration of $800,000 plus a $1 royalty per device sold,
Hiram assigns the patent to a computer manufacturing company.
Hiram assigned all substantial rights in the patent. Which of the
following is correct?