Question: Answer all questions and problems appearing on this examination under rules governing federal income taxation. Unless instructed otherwise, assume the relevant year to be 2023.

Answer all questions and problems appearing on this examination under rules governing federal income taxation. Unless instructed otherwise, assume the relevant year to be2023.

Allfinal answershavebeen rounded to the nearest$10.

5. Judith Jones, single, reports four sales of capital assets during 20x3, as set out below. Long-term capital gain $4,000 Long term capital loss 12,000 Short term capital loss 1,000 Short term capital gain 2,000 Judith's only other income for the year is salary of $80,000. What is Judith's adjusted gross income for the year? A $80,000 B 73,000 77.000 D 70,000 E None of the above 6. Spouses, Chip and Carrie Carson, purchased a principal residence in Richmond for 375,000 on October 1, 20x3. Carrie obtained a job in Boston, and on December 1, 20x4, they sold their home in Richmond for $650,000 and moved to Bost on. How much gain, if any must Chip and Carrie recognize on their 20x4 joint federal income tax return? A $500,000 B C 275,000 160,420 F None of the above 7. On May 1, 20x1, Maggie Mays (cash basis) leases property she owns to Tommy Thompson for rent of $1,000 per month. Tommy pays Maggie $2,000 as a damage deposit which will be returned at the end of the lease term.In addition, Tommy pays Maggie $6,000 as advance rent which is to be applied to rent for the last six months of the lease term. The lease runs for a one-year period beginning on May 1, 20xl. What is Maggie's rental gross income for 20x1? Assume that Tommy also makes six other $1,000 rental payments to Maggie during 20xl, A $12,000 B 8,000 14,000 D 6,000 E None of the above 8. In September, 20x5, married couple, John and Mary Mason, separate. Mary supports their two children after the separation and pays 100% of the cost of maintaining the home in which the children live after John moved out in September, 20x5. The parties remain married as of December 31, 20x5. John refuses to file a joint return for 20x5. Which statement is true regarding Mary's filing status on 20x5 Form 1040? A Mary may claim abandoned spouse filing status B Mary may file as a head of household C Mary must file as married separate D Mary may still file a joint return, thereby forcing John to also filejointly E None of the above

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