Question 1: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

Danil transfers stock to his former wife, Antonia. The transfer is pursuant to a divorce agreement. Danil's cost of the stock was $66,000 and its fair market value on the date of the transfer was $80,000. Danil must recognize a $14,000 gain on the transfer.

True or False

Question 2: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

Andy and Alba are married and filed a joint return for 2021. They furnish more than half of the support of Eric, Kate, and Jake. Eric (age 24) is their son and is a full-time MBA student. He received a $5,000 scholarship for tuition from business school. Kate is Eric's girlfriend and lives with Andy and Alba. Jake (age 17) is a cousin and earns $3,400 from a part-time job as a waiter. Jake lives with Andy and Alba.

How many dependents can Andy and Alba claim?

Question 3: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

In 2021, Celine is single and has taxable income of $20,000. Calculate her tax liability for 2021.

Question 4: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

Casey is married to Joseph, who abandoned her in 2019. She has not seen or communicated with him since November of that year. She maintains a household in which their daughter, Jane, lives. Jane is 24 years old and earns $4,800 each year. In 2021, Casey's filing status is:

A. Surviving spouse

B. Married, filing separately

C. Single

D. Head of household

E. Married, filing jointly