Juanita,who Is Single,is in an Automobile Accident in 2015 and Her

question 53

Multiple Choice

Juanita,who is single,is in an automobile accident in 2015 and her car sustains $6,200 in damages.Because both drivers received tickets in the accident,Juanita does not expect to recover any of the loss from her insurance company.Juanita's 2015 AGI is $31,000,and she deducts a $3,000 loss on her 2015 tax return.Her other itemized deductions in 2015 exceed $12,000.In 2016,Juanita's insurance company reimburses her $2,800.Juanita's 2016 AGI is $28,000.As a result,Juanita must

• A)amend 2015 to show a $200 loss.
• B)do nothing and simply keep the $2,800.
• C)do nothing to the 2015 return but report $2,800 of income on her 2016 return.
• D)amend the 2015 return to show $0 loss and file her 2016 return to show a $200 loss.

Calculate the equivalent cash value of complex financial offers.

Understand the basics of mortgages including principal, interest rate, amortization period, and payment frequency.

Calculate mortgage payments given different interest rates and amortization periods.

Calculate the effects of changing interest rates on renewal of mortgages.

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Definitions:

Motor Starter

An electrical device that controls the use of electrical power to equipment, usually an electric motor, by initiating the stop/start command.

Magnetic Contractor

A specialized type of relay used in high power applications to switch on and off electric currents.

Electronic Motor Overload Units

Devices that protect motors from drawing too much current, potentially causing overheating or failure.

Eutectic Alloy

A mixture of two or more metals that solidifies at a single temperature, the lowest at which the mixture can remain fully solid, forming a homogeneous crystal structure.