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