Reference no: EM131919241

Questions -

Q1. What are Susie's deductible moving expenses for 2012 if she spends $4,000 for packing and moving household goods, $1,200 to break the lease on her apartment, and $1,500 to store the household goods for 45 days? In April she drove her car 1,400 miles to her new home and spent $250 for motels and $80 for meals while traveling to the new home.

a. $4,572

b. $5,572

c. $6,152

d. $7,272

Q2. Joan gives an asset valued at $12,000 with a basis of $10,000 to Mary; Joan dies six-months later leaving an asset valued at $10,000 with a basis of $12,000 to Larry. What are Mary's' and Larry's bases in these assets?

a. Mary = $12,000; Larry = $12,000

b. Mary = $12,000; Larry = $10,000

c. Mary = $10,000; Larry = $12,000

d. Mary = $10,000; Larry = $10,000

Q3. Wesley sold a piece of property for $30,000 cash paying a $3,000 sales commission. The buyer assumed Wesley's $13,000 mortgage on the property. Wesley had purchased the property for $15,000 and had invested an additional $6,000 in it. What is Wesley's realized gain on the sale?

a. $6,000

b. $9,000

c. $19,000

d. $22,000