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the following year. The amount also includes a security deposit of
$1,500. How much should Brad and Kate report as rental income
in the current tax year?
6) The adjusted basis of an asset is:
7) Samantha is a full-time author and recently published her 8th
romance novel. The royalty income she receives from the
publisher this year should be reported on what schedule?
8) Patrice sells a parcel of land for $50,000 cash and the buyer
assumes Patrice’s liability of $7,000 on the land. Patrice’s basis in
the land is $40,000. What is the gain or loss she will recognize on
the sale?
9) Jane and Don own a Chalet in Lake Tahoe and rented it for 12
days for $8,000. The rest of year, the Chalet was used by them
and their friends and family. What is the proper tax treatment of
$8,000?
10) Renita purchased 500 shares in Prompt Messenger services
for $12,000 on November 21, 2007. The company went bankrupt
on June 13, 2008, with no hope of recovery for the shareholders.
On what date is the stock deemed to be worthless and what is the
nature of loss?
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ACC 401 Week 4 Assignment Chapter 9, Problem 42
problem 49 (UOP)
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