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.

---

Definitions:

Activity-Based Costing

An accounting method that assigns costs to products and services based on the resources they consume. This approach seeks to provide more accurate cost information by attributing overhead costs to specific activities.

Overhead Assigned

The allocation of indirect costs to specific products, services, or activities within a business.

Traditional Costing

A costing methodology that allocates manufacturing overhead based on volume-related measures such as labor hours or machine hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, indicative of the labor input required to complete production tasks.