Property Plant and Equipment Paper 9


For the year ended December 31, 2012, Sol Corp. had an operating income of $20,000. In addition, Sol had capital gains and losses resulting in a net short-term capital gain of $2,000 and a net long-term capital loss of $7,000. How much of the excess of net long-term capital loss over net short-term capital gain could Sol offset against ordinary income for 2012?


In 2012, Nam Corp., which is not a dealer in securities, realized taxable income of $160,000 from its business operations. Also, in 2012, Nam sustained a long-term capital loss of $24,000 from the sale of marketable securities. Nam did not realize any other capital gains or losses since it began operations. In Nam’s income tax returns, what is the proper treatment for the $24,000 long-term capital loss?


For assets acquired in 2013, the holding period for determining long-term capital gains and losses is more than


On July 1, 2012, Kim Wald sold an antique for $12,000 that she had bought for her personal use in 2010 at a cost of $15,000. In her 2012 return, Kim should treat the sale of the antique as a transaction resulting in


Paul Beyer, who is unmarried, has taxable income of $30,000 exclusive of capital gains and losses and his personal exemption. In 2012, Paul incurred a $1,000 net short-term capital loss and a $5,000 net long-term capital loss. His capital loss carryover to 2013 is


Capital assets include


Joe Hall owns a limousine for use in his personal service business of transporting passengers to airports. The limousine’s adjusted basis is $40,000. In addition, Hall owns his personal residence and furnishings, that together cost him $280,000. Hall’s capital assets amount to


In 2013, Ruth Lee sold a painting for $25,000 that she had bought for her personal use in 2007 at a cost of $10,000. In her 2013 return, Lee should treat the sale of the painting as a transaction resulting in


In 2012, a capital loss incurred by a married couple filing a joint return


Platt owns land that is operated as a parking lot. A shed was erected on the lot for the related transactions with customers. With regard to capital assets and Section 1231 assets, how should these assets be classified?
Land . . . . . Shed


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