Question 1 - Rob was given a residence in 2010. At the time of the gift, the residence had a fair market value of $200,000, and its adjusted basis to the donor was $140,000. The donor paid a gift tax of $10,000 on the taxable gift of $188,000. What is Rob's basis for gain?

a. $140,000.

b. $143,209.

c. $150,000.

d. $200,000.

e. None of the above.

Question 2 - Robin Corporation has ordinary income from operations of $30,000, net long-term capital gain of  -$10,000, and net short-term capital loss of $15,000. What is the taxable income for 2010?

a. $25,000.

b. $27,000.

c. $28,500.

d. $30,000.

e. None of the above.