53. Select the correct option (there is only one) for parts a. to g., thus answering all questions. Do not provide an explanation.

a. Many transactions that, in previous years, would have been reported by corporations and partnerships on which schedule must now be reported on Form 8949 - Sales and Other Dispositions of Capital Assets?

i. Schedule A

ii. Schedule B

iii. Schedule C

iv. Schedule D-1

b. The individual taxpayer uses Schedule D for all of the following except:

i. To report nonbusiness bad debts

ii. To figure the overall gain or loss from transactions reported on Form 8949

iii. To report a gain from Form 2439

iv. To report a gain or loss from Form 4684

c. The taxpayer should keep accurate records that show the basis of a property and, if applicable, the adjusted basis of the property should show which of the following?

i. The purchase price

ii. The cost of improvements

iii. Depreciation

iv. A

d. Mateo bought machinery on December 4, 2014. On June 4, 2015, he traded this machinery for other machinery in a nontaxable exchange. On December 6, 2015, Mateo sold the machinery he got in the exchange. His holding period for this machinery began on which date?

i. December 4, 2014

ii. December 5, 2014

iii. June 4, 2015

iv. June 5, 2015

e. Gwen inherited 100 shares of SuperShoes stock when her mother died on October 21, 2013; the fair market value of the stock was $20 per share. Her mother paid $200 per share when she purchased the stock March 1, 2004. If Gwen sells all 100 shares for $50 per share on July 3, 2015, how should she report the sale on her return for 2015?

i. $3,000 long-term capital gain

ii. $3,000 short-term capital gain

iii. $12,000 long-term capital gain

iv. $15,000 short-term capital loss

f. John and Jill Jones sold stock that resulted in a short-term capital loss of $5,000. They had no other capital transactions during the year. Their taxable income was $10,000. How much of the capital loss is deductible on their joint return and how much must be carried over to the next year?

i. $0 loss; $5,000 carryover

ii. $1,500 loss; $1,500 carryover

iii. $3,000 loss; $0 carryover

iv. $3,000 loss; $2,000 carryover

g. Brandt exchanged his collection of stamp albums for a tractor from Virgil in September 2015. The fair market value of the stamp albums is $3,000. The tractor has the same $3,000 fair market value. The collection of stamps cost Brandt $2,000 over the years to assemble. How should Brandt report this transaction on his 2015 tax return?

i. He reports it as a capital transaction with a $0 gain

ii. He is not required to report it because it is not taxable

iii. He attaches a statement to his return explaining that the exchange was for something of equal value

iv. He reports a $1,000 capital gain