Answers to Quiz 2

I have not submitted these, but here are my answers and work for Quiz #2:
1. A (You can not amortize insurance)
2. E (They are all intangible assets but only the leasehold improvement is subject to amortization, you can also get this if you think that a is correct for question 1)
3. D (Inventory can not be considering section 1231)
4. C (The section 1231 loss is $4,800 but we have no way of knowing the net capital loss as we were only given the numbers for Section 1231)
5. E (There is nothing to recapture as the sale resulted in a loss)
6. B (Your primary residence is not considered "income producing")
7. A (You must capitalize not deduct the replacement of a roof)
8. B (Buy cost=130k + new roof 6k - depreciation 8k= 128k, we don't use the 4k from repairs because they don't affect the basis in the property)
9. A (Not sure on this one but my thinking is that since he purchased the home after 1986 then he had to use straight line depreciation and therefore there would no acceleration of depreciation and thus no recapture would ever occur no matter when he sold.)
10. ? ( I don't think the right answer is on this quiz as tax law allows a section 179 deduction of up to 250k in 2009 and they passed the income test as well so they should be able to deduct the full amount of 171k...let me know what you guys come up with as I am probably approaching this wrong)
11. C
12. A
13. B
Here are my calculations, again please check these as I have not submitted this yet to check.
Step 1: Stu is getting 250k building and assuming (net) 50k in mortgage debt for a total of 200k
Stu is giving a building in which his basis is 75k
Therefore his realized gain is 125k
Step 2: He received negative boot so the lesser of boot and realized gain is 0=recognized gain
Step 3: Gain realized 125k - gain recognized 0k= 125k=Gain realized but not recognized
Step 4: FMV of property recieved = 250k - gain realized not recognized 125k = new basis 125k
14. D (I think this one is tricky because like kind still applies to improved vs unimproved property, my inclination was to choose E, but taking on a mortgage could trigger the boot clause which would then be considered a taxable event if she got net debt relief..)
15. B (It has to be A or B as June obviously qualifies so their capital gain has to be 50k or below (300k-250k) so we just need to check for any special rules regarding divorce, as their are none that I could find the correct answer must be B 50k)
16. B (Profit of 12k profit margin of 12k/32k= 37.5% First year's payments Feb 1 $4k, Dec 1 $7k total of $11k multiply that by the profit margin to get $4,125)
17. B ( This was straight out of the slides, but here it is anyway... Profit of 30k, profit margin = 30k/45k=66.6667% First year's payments =15%*45,000=$6750, $6750*66.6667%=$4,500
18. D
19. B
20. A
(The problem looks like this: Step 1: 75k (Received)- 40k (Basis)= 35k =realized gain, Step 2: 75k (received)-70k (replacement property cost)=5k=recognized gain, Step 3: 35k (realized)-5k (recognized)=30k postponed, Step 4: 70k (replacement cost)-30k (gain postponed)=40k (basis of replacement property)

Again as a reminder...I have no idea if these are correct this just represents my works thus far.  Please offer up all other solutions otherwise we won't come up with the right answers.  Thanks much guys look forward to your work!