1. Simon purchased 1,000 shares of ABC stock for $8,000 on April 4. On March 1 he had sold 1,500 shares of ABC stock for $9,000 that he had purchased three months earlier for $15,000. What is Simon's realized and recognized loss, respectively, on the March 1 stock sale?

• $6,000, $6000
• $6,000, 0
• $6,000, $4,000
• $4,000, $6,000
• None of the above

2. Cal exchanges office furniture (fair market value = $100,000; adjusted basis = $90,000) and a business auto (fair market value = $10,000; adjusted basis = $6,000) for fire retardant filing cabinets (fair market value = $110,000; adjusted basis = $80,000). How much gain or loss does Cal recognize on the exchange?

• 0
• $4,000 gain on auto
• $10,000 gain on furniture
• $14,000 total gain
• None of the above

3. Cloud Corporation has a taxable income of $100,000 in 2011 along with a $30,000 general business credit. What is the amount of its credit carryover and the last year to which the carryover could be used?

• $70,000, 2031
• $7,750, 2031
• $7,750, 2016
• $13,125, 2031

4. Which of the following is not a characteristic of a like-kind exchange?

• The holding period for like-kind property includes the holding period of the property surrendered.
• Receipt of boot can cause gain recognition up to the gain realized.
• Business realty can be exchanged for business personalty.
• Personal-use assets do not qualify for like-kind exchanges.
• All are like-kind characteristics.

5. A large corporation had a net long-term capital loss in 2011 and net operating loss in 2011. What are the earliest year(s) to which these losses can be carried?

• 2008 for both
• 2007 for both
• 2009 for the capital loss; 2007 for the NOL
• 2008 for the capital loss; 2009 for the NOL

6. Which of the following would not be considered an involuntary conversion?

• The theft of jewelry
• Sale of property in a flood zone
• Condemnation of a building for a highway
• Destruction of a home by a tornado
• All are involuntary conversions

7. Coho is a corporation that has $1,100,000 of gross revenue and $1,021,000 of deductible expenses? What is its income tax liability?

• $79,000
• $30,494
• $26,860
• $15,110
• None of the above