Hope Sustained a $3,600 Casualty Loss Due to Severe Rainstorms

question 58

Multiple Choice

Hope sustained a $3,600 casualty loss due to severe rainstorms classified as a federal disaster.She also incurred a $800 loss from a tornado also classified as a federal disaster in the same year.Both losses involved personal-use property.Hope's AGI for the year is $35,000 and she does not have insurance coverage.Hope's deductible casualty loss is

• A)$700.
• B)$800.
• C)$4,200.
• D)$4,300.

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Definitions:

John Maynard Keynes

A British economist whose theories on the causes of prolonged unemployment and recommendations for government intervention in economies to stimulate demand and growth form the basis of Keynesian economics.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his works "The Wealth of Nations," which lays the foundations of classical economics.

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critical theories about capitalism and his influence on the development of socialist economic and political theory.

Classical Economists

Early economic theorists, primarily in the 18th and 19th centuries, who focused on the role of free markets in promoting economic growth and believed in minimal government intervention.