1.) Margaret died on September 16, 2015, when she owned securities with a basis of $50,000 and a FMV of $60,000. Caroline inherited the property and sold it on December 19, 2015 for $67,000. What is Caroline's reported gain on this sale? a.) $17,000 LTCL b.) $17,000 STCG c.) $7,000 LTCG d.) $7,000 STCG
2.) Carla redeemed EE bonds which qualify for the educational exclusion. The redemption consisted of $14,000 principal and $6,000 interest. The net qualifying educational expenses are $10,000. Her AGI is below the threshold for phase-out of the exclusion. The taxable interest is? a.) $3,000 b.)$0 c.) $6,000 d.) $2,400
3.) If an individual with a marginal tax rate of 25% has a long-term capital gain, it is taxed at? a.) 0% b.) 25% c.) 15% d.)20%
4.) In 2015, Richard, a single taxpayer, has AGI of $40,150. His AGI includes $4,000 of qualified dividends. Richard has no dependents nd does not itemize deductions. What is his 2015 federal income tax? a.) $4,016 b.) $4,024 c.) $3,416 d.)$4,054