Ikito Had a Bad Year

question 51

Multiple Choice

Ikito had a bad year.In 2013,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 2013 if his AGI is $68,000?

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

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure from the statement.

Ratio Analysis

An examination of the relationship between two numbers or sets of numbers on financial reports. Analyses of ratios, especially over time, can give a fairly clear picture of how well a company conducts its business.

Statement Analysis

The process of examining financial statements to make business decisions, which often involves assessing profit, liquidity, and solvency among other aspects.