1. Which of the following properties is not eligible for the §179 expense election when purchased?

A business automobile.

A business computer.

Rental property.

Manufacturing equipment.

2. Jake purchased a $300,000 earthmover for his business. He sold the earthmover for $245,000 after taking $210,000 of depreciation. What is the nature and amount of the gain or loss on the sale?

$55,000 Section 1245 ordinary income and $100,000 Section 1231 gain.

$90,000 Section 1245 ordinary income and $65,000 Section 1231 gain.

$155,000 Section 1231 gain.

$155,000 Section 1245 ordinary income.

3. What form is filed to report the self-employment tax?

Form 1040.

Schedule SE.

Schedule C.

Schedule D.

4. Which of the following is not considered a capital improvement for a rental activity?

Addition of a bathroom

Replacement of the roof

Repair of a leaky water pipe

New landscaping

5. Reuben, a single taxpayer, has wage income of $75,000. He also has a short-term capital loss of $5,000, a short-term capital gain of $2,000, and a long-term capital gain of $3,000. What is Reuben's AGI for 2014?

$72,000.

$75,000.

$77,000.

$78,000.