Roberta Warner and Sally Roger formed the Acme Corporation on October 1, 2015. On the same date Warner paid $75,000 cash to Acme for 750 shares of its common stock. Simultaneously, Roger received 100 shares of Acme's common stock for services rendered. How much should Roger include as taxable income for 2015, and what will be the basis of her stock? Taxable Income Basis of Stock

Roberta Warner and Sally Roger formed the Acme Corporation on October 1, 2015. On the same date Warner paid $75,000 cash to Acme for 750 shares of its common stock. Simultaneously, Roger received 100 shares of Acme's common stock for services rendered. How much should Roger include as taxable income for 2015, and what will be the basis of her stock?
Taxable Income Basis of Stock

A. 10,000 0
B. 0 0
C. 10,000 10,000
D. 0 10,000

Answer: C

Jose started renting a house to Bill for $600 per month beginning February 1, 2015. Bill paid $1,200 on January 15, 2015, which included one month's rent and one month's security deposit. The rent is due by the 5th of the month. The lease specifies that the security deposit will also be used as the final month's rent. Bill pays the rent on the 2nd of each month. Bill also paid $150 for repairs to the air-conditioning system in July and $80 for a roof repair in September. He deducted the amounts from the rent paid to Jose for those months. Bill was unable to pay December's rent until January of the next year. How much should Jose report as rental income for 2015?

Jose started renting a house to Bill for $600 per month beginning February 1, 2015. Bill paid $1,200 on January 15, 2015, which included one month's rent and one month's security deposit. The rent is due by the 5th of the month. The lease specifies that the security deposit will also be used as the final month's rent. Bill pays the rent on the 2nd of each month. Bill also paid $150 for repairs to the air-conditioning system in July and $80 for a roof repair in September. He deducted the amounts from the rent paid to Jose for those months. Bill was unable to pay December's rent until January of the next year. How much should Jose report as rental income for 2015?

A. 6900
B. 7200
C. 6600
D. 6000

Answer: C

All of the following statements are true except

All of the following statements are true except 

A. A son, age 21, was a full-time student who earned $4,000 from his part-time job. The money was used to buy a car. Even though he earned $4,000, his parents can claim him as a dependent if the other exemption tests were met.
B. For each person claimed as a dependent, the Social Security number, adoption taxpayer identification number, or individual taxpayer identification number must be listed.
C. If a married person files a separate return, (s)he can take an exemption for his or her spouse if the spouse had no gross income and was not the dependent of another taxpayer.
D. A brother-in-law must live with the taxpayer the entire year to be claimed as a dependent even if the other tests are met.

Assuming Mr. Cypress is a cash-basis taxpayer, what amount should Mr. Cypress include in his 2015 gross income from the apartment building?

Assuming Mr. Cypress is a cash-basis taxpayer, what amount should Mr. Cypress include in his 2015 gross income from the apartment building?

A. 35,500
B. 39,500
C. 35,000
D. 38,000

Answer: D