In the Current Year, Marcus Reports the Following Casualty Gains

question 783

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. As a result of these losses and insurance recoveries, Marcus must report

• A) 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.
• B) 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.
• C) 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.
• D) a net gain of $3,700.

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Definitions:

Certiorari

A writ issued by a superior court directing the transfer of a case from a lower court for review.

Writ of Certiorari

A court order requesting the lower court to deliver its record in a case so that the higher court can review it.

Original Jurisdiction

The authority of a court to hear a case for the first time, as opposed to appellate jurisdiction, which reviews the decisions of lower courts.

Supreme Court

The highest judicial body in a country or state, with ultimate appellate jurisdiction and often the authority to interpret the constitution.