Question

A set-aside of funds into a replacement reserve is a tax-deductible expense.

Question 23 options:

	1) True
	2) False

The current maximum capital gains exclusion for married filing a joint return from the sale of property held as personal residence is $500,000.T/F

A borrower incurring non-recourse debt is effectively acquiring a put option from the lender. The smaller the amount of debt allowed by the lender, the lower the value of the put option.

Question 14 options:

	1) True
	2) False

In general, the risk of default increases with the use of debt in financing.

Question 13 options:

	1) True
	2) False

Answer 1

Question 13:

Risk of default increases with the use of debt in financing , both risk and return are increases with debt financing so the option (1) is the correct answer.

Given statement is true.

Question 14:

A borrower incurring non-recourse debt is effectively acquiring a put option from the lender. The smaller the amount of debt allowed by the lender, the lower the value of the put option.

So the option (1) is the answer.

Given statement is true.

The current maximum capital gains exclusion for married filing a joint return from the sale of property held as personal residence is $500,000.($250,000 individual) . The given statement is true.

A set-aside of funds into a replacement reserve is a tax-deductible expense.

This is also true.