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

All final answers have been rounded to the nearest $$10.$

$1.$ Spouses Bill and Betty Baker, ages $78$ and $69,$ maintain and reside in a home in which Betty's mother, Bertha, also lives. Bertha is age $92$ and blind with zero gross income. Bill and Betty provide $100\%$ of Bertha's support. What standard deduction will Bill and Betty claim on their joint federal income tax return for the year? A $$30,700$ B $27,700$ C $28,700$ D $29,200$ E None of the above

$2.$ Thomas Taylor, who was injured in an automobile accident caused by another driver, Flash Fisher, received $$20,000$ from Flash's insurance company to cover medical bills related to Thomas' injuries, $$4,000$ in damages because of the injury, and $$15,000$ in in punitive damages, all during $20$xl$.$ Thomas also earned $$10,000$ from a part$-$time job prior to the accident, received $$900$ of United States series EE savings bond interest, and collected $$2,000$ in unemployment benefits while out of work during the year. What is Thomas' adjusted gross for the year? income for the year? A $ $27,000$ B $25,900$ C $25,000$ D $10,900$ E None of the above

$3.$ Ben Baker purchased Ajax Company stock five years ago for $$9,000,$ which he gifted to Anne Able at a time when the stock's market value was $$12,000.$ Subsequently, Anne sold the stock for $$13,000.$ What will be the amount of Anne's gain or loss on the sale? A $$3,000$ gain B $1,000$ gains C $4,000$ gains D O gain or loss E None of the above

$4.$ In $20$x$9,$ Russell Rogers is single with a net investment income of $$18,000$ and modified adjusted gross income of $$270,000.$ What is the amount of Russell's net investment income tax for the year? A $$2,660$ B $0$ C $680$ D $760$ E None of the above

$5.$ Judith Jones, single, reports four sales of capital assets during $20$x$3,$ 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 $73,000$ C $77\mathrm{.}000$ 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 $1,20$x$3.$ Carrie obtained a job in Boston, and on December $1,20$x$4,$ they sold their home in Richmond for $$650,000$ and moved to Bost on$.$ How much gain, if any must Chip and Carrie recognize on their $20$x$4$ joint federal income tax return? A $$500,000$ B $0$ C $275,000$ D $160,420$ E None of the above