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True/False Give a brief explanation for your answer ____ 1. The purpose of the work...

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Accounting

True/False Give a brief explanation for your answer

____ 1. The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups traditionally subject to high rates of unemployment.

____ 2. Molanda sells a parcel of land for $45,000 in cash and the buyer assumes Molandas mortgage of $20,000 on the land. Molanda pays a real estate agent $3,000 on the trasnaction. Molandas amount realized is $62,000.

____ 3. Cassie purchases a sole proprietorship for $155,000. The fair market value of the tangible assets is $115,000 and the agreed to value of goodwill is $10,000. Assuming there are no other intangible assets, Cassies basis for the tangible assets is $115,000 and her basis for the goodwill is $10,000.

____ 4. Sam purchased an SUV for $52,000 which he uses 100% for personal purposes. When the SUV is worth $19,000, he contributes it to his business. The gain basis is $52,000, the loss basis is $19,000, and the basis for cost recovery is $19,000.

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