Transactions for income tax purposes

Assignment Help Financial Accounting

Reference no: EM131221372

a. Mark and Lisa were divorced in 2014. In 2015, Mark has custody of their children, but Lisa provides nearly all of their support. Who is entitled to claim the children as dependents?

b. During the year, Hernando has the following transactions:

• Gain on the sale of stock held as an investment for 10 months.

• Gain on the sale of land held as an investment for 4 years.

• Gain on the sale of a houseboat owned for 2 years and used for family vacations.

• Loss on the sale of a reconditioned motorcycle owned for 3 years and used for recreational purposes.

How should Hernando treat these transactions for income tax purposes?

Reference no: EM131221372

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