Which of the following does not decrease basis?

• A.cash or property paid out
• B.depletion of real property
• C.losses
• D.income from extraordinary sources

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The Securities Act of 1933 provides for:

• A.extension of credit in the securities industry
• B.establishment of the Securities and Exchange Commission
• C.regulation of new issues of securities
• D.all of the above

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Which of the following is associated with an income oil and gas partnership?

• A.capital appreciation
• B.the risk of dry holes
• C.high intangible drilling costs
• D.cash flow and depletion allowance

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Bubba is age 54 and has investments in a retirement plan with his former employer valued at $104,500.
Bubba withdraws $25,000 to open a retail clothing store.
Which of the following statements is true regarding Bubba's tax consequences?

• A.the entire account is terminated and $104,500 is immediately taxable
• B.a penalty of 10% of the withdrawn amount is assessed
• C.a penalty of 10% on all assets in Bubba's account is assessed
• D.only regular income tax is due on the amount withdrawn

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Bubba buys 100 shares of XYZ stock at $40 per share and sells a listed July XYZ call at 45 for a $2 premium.
What is his loss potential?

• A.$3,800
• B.$4,000
• C.$4,200
• D.$4,500

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