Essay on Tax Test Answers

967 Words Jan 27th, 2013 4 Pages
* Question 1
5 out of 5 points | | | An artist's painting is not a capital asset when held by the artist.Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 2
0 out of 5 points | | | Taxpayers are allowed to offset net short-term capital losses with net long-term capital gains.Answer | | | | | Selected Answer: | False | Correct Answer: | True | | | | | * Question 3
0 out of 5 points | | | Net short-term capital gains may be offset by net long-term capital losses.Answer | | | | | Selected Answer: | False | Correct Answer: | True | | | | | * Question 4
0 out of 5 points | | | Accounts receivable are capital
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Net short-term capital gains are not netted with net long-term capital losses. | Correct Answer: | b. For 2011, long-term capital gains are subject to special tax treatment. | | | | | * Question 17
5 out of 5 points | | | If property is inherited by a taxpayer,Answer | | | | | Selected Answer: | d. The basis to the recipient is the fair market value at the decedent’s date of death | Correct Answer: | d. The basis to the recipient is the fair market value at the decedent’s date of death | | | | | * Question 18
0 out of 5 points | | | Sol purchased land as an investment on January 12, 2004, for $85,000. On January 31, 2011, Sol sold the land for $20,000 cash. In addition, the purchaser assumed the mortgage of $70,000 on the land. What is the amount realized (not gain realized) on the sale of

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