M Had Three Separate Casualties Involving Personal Use Property During

question 33

Multiple Choice

M had three separate casualties involving personal use property during the current year: M received insurance reimbursement as follows: $8,000 for damages to home; $700 for repair of car; and $5,000 for theft of silverware.What is M's deductible gain (or loss) on each casualty, respectively, before any percentage limit?

• A)$1,900 loss, $200 loss, $3,000 gain
• B)$2,000 loss, $300 loss, $3,000 gain
• C)$10,000 loss, $1,000 loss, $7,000 loss
• D)$10,000 gain, $2,000 loss, $2,000 loss

---

Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the products, and collect cash from the sales.

Maturity Value

The total amount payable to an investor at the end of a bond's term, including both the principal and the interest.

Bonds

Fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental.

Cash Proceeds

The total amount of cash received from the sale of goods, asset disposals, or financing transactions.