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:

Electronic Storage

The saving of data and digital files on electronic devices or media, such as computers, cloud storage, or digital archives.

Technology Development

The process of creating and improving technological products, services, or systems.

Employers Monitoring

The practice by employers to oversee and track the actions and communications of employees during work hours on company systems and properties to ensure productivity and compliance with policies.

Activities Outside Work

Tasks or engagements pursued by an individual outside of their professional employment hours.