1- On May 18, 2012, Sara purchased 30 shares of ABC stock for $210, and on October 29, 2012, she purchased 90 additional shares for $900. On November 28, 2012, she sold 48 shares, which could not be specifically identified, for $576, and on December 8, 2012, she sold another 25 shares for $150. What is her recognized gain or loss? (Points : 17)
2- Randolph is a single individual who always claims the standard deduction. Randolph received the following in the current year:
| Wages | $ 30,000 |
| Unemployment compensation | 6,000 |
| Pension distribution (100% taxable) | 4,000 |
| A state tax refund from the previous year |
650 |
What is Randolph’s gross income? (Points : 17)
3- For the year ended December 31, Year 6, Taylor Corp. had a net operating loss of $200,000. Taxable income for the earlier years of corporate existence, computed without reference to the net operating loss, was as follows:
Taxable Income:
Year 1 $ 5,000
Year 2 10,000
Year 3 20,000
Year 4 50,000
Year 5 50,000
What amount of net operating loss will be available to Taylor for the year ended December 31, Year 7? (Points : 17)
4-0A review of Bearing’s Year 2 records disclosed the following tax information:
| Wages | $ 18,000 |
| Taxable interest and qualifying dividends | 4,000 |
| Schedule C trucking business net income | 32,000 |
| Rental (loss) from residential property |
(35,000) |
| Limited partnership (loss) | (5,000) |
Bearing actively participated in the rental property and was a limited partner in the partnership. Bearing had sufficient amounts at risk for the rental property and the partnership. What is Bearing’s Year 2 adjusted gross income? (Points : 17)
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