In 2019, Wally Had the Following Insured Personal Casualty Losses

question 19

Multiple Choice

In 2019, Wally had the following insured personal casualty losses (arising from one casualty in a Federally declared disaster area) . Wally also had $42,000 AGI for the year before considering the casualty. $\begin{array}{ccccc}&&\text { Fair Market Value }\\\text { Asset }& \text { Adjusted Basis }& \text { Before }& \text {After }& \text {Insurance Recovery }\\\text { A } & \$ 9,200 & \$ 8,000 & \$ 1,000 & \$ 2,000 \\\text { B } & 3,000 & 4,000 & -0- & 4,000 \\\text { C } & 3,700 & 1,700 & -0- & 900\end{array}$ Wally's casualty loss deduction is:

• A) $1,500.
• B) $1,600.
• C) $4,800.
• D) $58,000.
• E) None of these.

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