Reference no: EM132594022

Question 1: Stephanie sold land she purchased three months earlier for use in her business. Her cost (and adjusted basis) in the land is $85,000. She incurred $15,000 in expenses related to the sale. The buyer paid $90,000 cash and assumed Stephanie's $35,000 mortgage on the property. What is the amount of her gain, and where on Form 4797 will she report the sale?

A. $25,000, Part I.

B. $25,000, Part II.

C. $40,000, Part III.

D. $40,000, Part IV

Question 2: Dawson, Inc., had regular tax due of $35,000 for the tax year ending December 31, 2019. It also had $60,000 of alternative minimum tax (AMT) credit carried forward from prior years and available in 2019. What is the amount of the AMT credit that can be claimed in 2019?

A. $12,500 ???

B. $25,000

C. $35,000

D. $60,000

Question 3: Each of the following are examples of a partnership EXCEPT:

A. A business entity with a limited and a general member agreement.

B. A business entity with a single member LLC and employees who materially participate in the business.

C. A business entity with a sole proprietorship, two estates, and a corporation as members. The sole proprietorship is responsible for day-to-day operations.

D. A husband and wife entity that engages in a business activity and shares all profits and losses.