Ikito Had a Bad Year

question 20

Multiple Choice

Ikito had a bad year.In 2015,his home was broken into and his TV,DVD,VCR and computer were all stolen.The properties had a basis of $15,000 and a current fair market value of $9,000.Later that year,his car was hit by a garbage truck.It cost Ikito $9,000 to have the car repaired.Ikito didn't believe in insurance,so he received no reimbursements.In addition,the garbage company filed for bankruptcy after the accident.How much may Ikito deduct as an itemized deduction in 2015if his AGI is $68,000?

• A)$18,000
• B)$17,800
• C)$11,000
• D)$10,200

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Definitions:

Adjusted Trial Balance

The Adjusted Trial Balance is a list of all accounts and their balances after adjustments have been made for entries like accruals and deferrals, ensuring the accuracy of financial statements.

Post-Closing

Post-closing refers to the period after the closing entries are made in the accounting cycle, aimed at preparing the accounts for the next period by resetting revenue and expense accounts to zero.

Unadjusted

Pertaining to figures or balances not yet modified for errors, changes, or specific adjustments required for accurate reporting.

Adjusted

Modified or changed to reflect more accurate or specific conditions or values.