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.