What is the gain or loss realized on the sale

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Reference no: EM131202234

1. Vijay sells land and receives $5,000 cash, a motorcycle worth $2,000, two tickets to the Super Bowl with a total face value (cost) of $800 but worth $1,200, and the buyer assumes the mortgage on the land of $12,000. What is Vijay's amount received in this transaction?

a. $5,000

b. $7,800

c. $8,200

d. $19,800

e. $20,200

2. Bob sells a stock investment for $35,000 cash, and the purchaser assumes Bob's $32,500 debt on the investment. The basis of Bob's stock investment is $55,000. What is the gain or loss realized on the sale?

a. $10,000 loss

b. $10,000 gain

c. $12,500 gain

d. $22,500 loss

e. $22,500 gain

3. In 2015, Tim, a single taxpayer, has ordinary income of $30,000. In addition, he has $2,000 in short-term capital gains, long-term capital losses of $10,000, and long-term capital gains of $4,000. What is Tim's AGI for 2015?

a. $26,000

b. $27,000

c. $31,000

d. $32,000

Reference no: EM131202234

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