2021 tax year Eric and Samantha, joint filers, had AGI of $90,000 and will itemize for the year. They endured the following unfortunate events:• Samantha discovered her antique brooch had been stolen. She paid $6,000 for the brooch, and it was not covered byinsurance.• As a result of a short in their electrical grid, they lost their vacation home to fire. They had replacement-value insurance on thehome. They paid $285,000 for the home last year, and recelved insurance proceeds of $290,000.They completely lost a car in a flood that was a federally declared disaster. According to Kelly Blue Book, the value of the carbefore the disaster was $24,000. They originally paid $35,000 for the car and received $15,000 from the insurance company.• In the same flood, they completely lost an ATv. They paid $32,000 for the ATV, and it had a replacement cost of $37,000. Theyhad owned the ATV for 3 years, and they received $20,000 from the insurance company.What is their casualty loss deduction?$6,600$5,700O 55,800$6,500

Given as, The 2021 tax year as,

l grid, they lost their vacation home to fire. The ome last year, and received insurance proceeds chat was a federally declared disaster. Accordin y originally paid $35,000 for the car and receive st an ATV. They paid $32,000 for the ATV, andi hey received $20,000 from the insurance comp

l grid, they lost their vacation home to fire. The ome last year, and received insurance proceeds chat was a federally declared disaster. Accordin y originally paid $35,000 for the car and receive st an ATV. They paid $32,000 for the ATV, andi hey received $20,000 from the insurance comp

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

2021 tax year

Eric and Samantha, joint filers, had AGI of $90,000 and will itemize for the year. They endured the following unfortunate events:
• Samantha discovered her antique brooch had been stolen. She paid $6,000 for the brooch, and it was not covered by
insurance.
• As a result of a short in their electrical grid, they lost their vacation home to fire. They had replacement-value insurance on the
home. They paid $285,000 for the home last year, and recelved insurance proceeds of $290,000.
They completely lost a car in a flood that was a federally declared disaster. According to Kelly Blue Book, the value of the car
before the disaster was $24,000. They originally paid $35,000 for the car and received $15,000 from the insurance company.
• In the same flood, they completely lost an ATv. They paid $32,000 for the ATV, and it had a replacement cost of $37,000. They
had owned the ATV for 3 years, and they received $20,000 from the insurance company.
What is their casualty loss deduction?
$6,600
$5,700
O 55,800
$6,500

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