In the Current Year,Marcus Reports the Following Casualty Gains and Losses

question 102

Multiple Choice

In the current year,Marcus reports the following casualty gains and losses on personal-use property.Assets X and Y are destroyed in the first casualty while Z is destroyed in a second casualty.Both casualties were the result of federal disasters. $$\begin{array} { | l | r | r | r | c | } \hline \text { Asset } & \begin{array} { c } \text { Reduction } \\\text { in FMV }\end{array} & \begin{array} { c } \text { Adjusted } \\\text { Basis }\end{array} & \text { Insurance } & \begin{array} { c } \text { Holding } \\\text { Period }\end{array} \\\hline \mathrm { X } & \$ 8,000 & \$ 2,000 & \$ 7,000 & 2 \text { years } \\\hline \mathrm { Y } & 3,000 & 5,000 & 2,000 & 10 \text { months } \\\hline Z & 2,500 & 1,300 & 1,000 & 8 \text { months } \\\hline\end{array}$$ As a result of these losses and insurance recoveries,Marcus must report

• A)a net gain of $3,700.
• B)a long-term gain of $4,900 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $200 on asset Z.
• C)a long-term capital gain of $5,000 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $200 on asset Z.
• D)a long-term capital gain of $5,000 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $300 on asset Z.

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Definitions:

Electronics Test

A process or procedure used to assess the functionality and performance of electronic components or systems.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely, characterized by constant probability over its intervals.

Electronics Test

An examination or procedure designed to assess the functionality and performance of electronic devices.

Probability

A measure of the likelihood or chance that a certain event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.