9. (TCOs 7, 8, & 9) Matt and Shanekwa, ages 45 and 44, respectively, file a
joint tax return for 2011. They provided all of the support for their 24-year-old son, who had $2,500 of gross income. Their
23-year-old daughter, a full-time student until her graduation on June 14, 2011, earned $6,000, which was 45% of her total
support during 2011. Her parents provided the remaining support. Matt and Shanekwa also provided total support for Shanekwa’s
father who is a citizen and life-long resident of Portugal. How many personal and dependency exemptions can Matt and Shanekwa
claim on their 2011 income tax return? (Points : 5)

10. (TCOs 2, 8, & 9) During 2011, Robin sold the following assets: business
equipment for a $6,000 loss, stock investment for a $15,000 loss, and her principal residence for a $14,000 loss. Presuming
adequate income, how much of these losses may Robin claim on her 2011 return? (Points : 5)

11. (TCOs 2, 8, & 9) Shaquille operates a drug-running operation and
incurred the following expenses:

Which of the above amounts reduces his taxable income? (Points : 5)

12. (TCOs 2 & 11) Which, if any, of the following transactions will not
accelerate the gain on an installment note? (Points : 5)

13. (TCOs 2 & 11) In the case of a retailer with average annual gross
receipts of $900,000: (Points : 5)