Gary, Who Is an Employee of Red Corporation, Reports the Following

question 111

Essay

Gary, who is an employee of Red Corporation, reports the following items for 2019: $$\begin{array} { l r } \text { Salary } & \$ 80,000 \\\text { Federal disaster area personal casualty gain } & 7,000 \\\text { Federal disaster area personal casualty loss from one event (before } & ( 15,000 ) \\\text { the } \$ 100 \text { floor) } & \\\text { Loss on rental property } & ( 6,000 ) \\\text { Theft of bonds } & ( 18,000 ) \\\text { Unreimbursed loss from theft of a computer used 100\% for business } & ( 4,000 )\end{array}$$ Determine Gary's AGI and total amount of itemized deductions for 2019.

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Definitions:

Going Private

A transaction or series of transactions in which a publicly traded company is transformed into a privately held one.

Freeze-Out

In corporation law, a type of oppression by which only minority shareholders are forced to sell their shares.

Right Of Appraisal

The process to determine the fair market value of an asset by a neutral third party or appraiser.

Greenmail

A situation where a company buys back its own shares from a potential acquirer at a higher price than the market value to prevent a hostile takeover.