In 2001​, Ethel purchased a house for $50,000 to use as her personal residence. She paid $10,000 and borrowed $40,000

QI:5-1
What problem may exist in determining the amount realized for an investor who exchanges common stock of a publicly traded corporation for a used​ building? How is the problem likely to be​ resolved?


QI:5-2
In 2001​, Ethel purchased a house for $50,000 to use as her personal residence. She paid $10,000 and borrowed $40,000 from the local savings and loan company. In 2005 she paid $19,000 to add a room to the house. In 2007 she paid $800 to have the house painted and $1,100 for​ built-in bookshelves. As of January 1 of the current​ year, she has reduced the $40,000 mortgage to $36,000. What is her basis for the​ house?
Her basis for the house is $ 70100      (10000+40000+19000+1100)


QI:5-3
Vincent pays​ $20,000 for equipment to use in his trade or business. He pays sales tax of​ $800 as a result of the purchase. Must the​ $800 sales tax be capitalized as part of the purchase​ price?


QI:5-9
A corporate taxpayer plans to build a​ $6 million office building during the next 18 months. How must the corporation treat the interest on debt paid or incurred during the production​ period?


QI:5-10
Andy owns an applicance store where he has merchandise such as refrigerators for sale.​ Roger, a​ bachelor, owns a​ refrigerator, which he uses in his apartment for personal use. For which individual is the refrigerator a capital​ asset?