11. Al & Carolyn have been married for 35 years. In 1982, they built a home in Suburbia for $50,000 where they've lived ever since. They just sold their house for $650,000. Selling expenses totaled $35,000. What is their recognized gain?
a) $0
b) $35,000
c) $65,000
d) $100,000
e) $315,000
12. Which of the following is not true regarding C corporations?
a) Tax brackets are adjusted annually for inflation
b) Tax rate for Personal Service Corporations is a flat 35%
c) A tax return must be filed even without any taxable income
d) The highest marginal tax rate is 39%
13. In December of 2013, Klutz Inc. received dividend income from PepsiCo of $10,000. Klutz owns much less than 20% of PepsiCo. Klutz's total income was $50,000. What is Klutz's Dividend Received Deduction for 2013?
a) $0
b) $7,000
c) $10,000
d) $35,000