While Susan Was on Vacation During the Current Year, Someone

question 84

Essay

While Susan was on vacation during the current year, someone broke into her home and stole the following items:
? A computer used 60% in connection with Susan's employment as an employee and 40% for her personal use. The cost of the computer was $8,000. Depreciation of $3,000 had been taken on the computer and it had a fair market value of $4,000 at the time of the theft.
? A painting, which Susan purchased as an investment for $10,000, had a fair market value of $17,000.
? Silverware purchased for $3,000 had a fair market value of $5,000.
? Cash of $30,000.
Susan's adjusted gross income, before considering any of the above items, is $60,000. Determine the total amount of Susan's itemized deductions resulting from the theft.

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Definitions:

Precision Drills

High-accuracy tools used for making holes in various materials with exact measurements.

Variable Overhead

Costs that fluctuate with production volume, such as utilities or materials used in the manufacturing process.

Overhead Efficiency

The effectiveness with which an organization manages its overhead costs in relation to its operational activities.

Direct Labor-Hours

Cumulative working hours of employees specifically involved in the production process.