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

question 434

Multiple Choice

Hope sustained a $3,600 casualty loss due to a 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 $25,000 and she does not have insurance coverage. Hope's deductible casualty loss is

• A) $4,300.
• B) $4,200.
• C) $1,800.
• D) $1,700.

---

Definitions:

Cash Dividend

A disbursement from a corporation to its shareholders, typically issued in cash, derived from its profits.

Payable

Short-term financial obligations or debts of a company, typically to suppliers, that are due to be paid within one year.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Dividends Payable

A liability on a company's balance sheet representing the amount of declared dividends that are owed to shareholders but not yet paid.