1. Stephen purchased a video game console five years ago for $500. To raise money for the "latest and greatest" console, Stephen sold his original console for $100. Because of advances in technology, Stephen can purchase the new console for $400. What is the tax treatment of Stephen's sale of his console?
a. Stephen recognizes a $400 loss
c. Stephen recognizes a $300 loss
d. Stephen recognizes a $100 gain
2. Which of the following is excluded from gross income on an individual's 2016 tax return?
a. January 2017 rent received in December 2016
b. Value arising from personal use of company vehicle in 2016
c. Dividends announced by a C Corporation in December 2015 and received in
January 2016