Problem 5-33 Casualty and Theft Losses (LO 5.10) Kerry's car is totaled in a tornado that is declared a federal disaster. The car originally cost $18,000, but is worth $7,500 at the time of the accident. Kerry's insurance company gives her a check for $5,000. Kerry has $30,000 of adjusted gross income. How much can Kerry claim as a casualty loss on her tax return? $0 $7,500 $18,000 $30,000

Problem 5-33 Casualty and Theft Losses (LO 5.10) Kerry's car is totaled in a tornado that is declared a federal disaster. The car originally cost $18,000, but is worth $7,500 at the time of the accident. Kerry's insurance company gives her a check for $5,000. Kerry has $30,000 of adjusted gross income. How much can Kerry claim as a casualty loss on her tax return? $0 $7,500 $18,000 $30,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Help ▼ Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of $4,746. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $210,869. Prior to the loss, her home was valued at $217,000, her detached garage and poolhouse were valued at $32,043, and her personal property had an actual cash value of $92,519. To make matters worse she sustained $10,000 in injuries while trying, unsuccessfully, to save her three Greyhound dogs valued at $6,000 each. How much of her total losses and expenses will be reimbursed if she has a $1,000 deductible? The amount of total losses and expenses she will be reimbursed if she has a $1,000 deductible is $ (Round to the nearest dollar.)
Problem 06-40 (Static) [LO 6-11] Margaret, a married taxpayer filing a joint return, engaged in two business activities this year, Business A earned $400,000 of profit. Business B incurred a loss of $(995,000) Required: How much of Margaret's net business loss is not currently deductible? Note: Negative amount should be entered with a minus sign. Answer is complete but not entirely correct. $(95,000) Margaret's excess business loss not currently deductible
Personal automobile policy coverage. Zachary Lee has a personal automobile policy [PAP] with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each. Zachary’s 18-year old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
QUESTION E This is the first year a taxpayer has used a vehicle for business. They drive 6,000 business miles. They also drove 4,000 personal miles. They had the lowing expenses. Gas $1,400 Maintenance $200 Insurance $600 Parking Fees $100 The taxpayer olects the actual expense method for calculating transportation deductions. What is their transportation tax deduction? O $920 O $1,320 O $1,420 O $1,380
Problem 4-8 Sale of a Personal Residence (LO 4.6) On July 1, 2021, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $50,000. The expenses associated with the sale of his home total $21,000. On December 15, 2021, Ted purchases and occupies a new residence at a cost of $225,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. Realized gain Recognized gain Adjusted basis of the new residence %24 %24
Problem 4-44 (a) (LO. 3) Anna-Catherine and Anthony were divorced on March 15, 2020, after four years of marriage. Their current year's income received before the divorce was as follows: Anthony's salary $88,000 Anna-Catherine's salary 92,000 Rent a business office purchased by Anna-Catherine six years ago 120,000 Interest on CD Anthony inherited from his uncle two years ago 630 Dividends on stock in Anna-Catherine's name funded with her salary 4,100 Allocate the income to Anna-Catherine and Anthony assuming that they live in: a. California. Anthony: Anna-Catherine: b. Louisiana. Anthony: $ Anna-Catherine:
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