Gwen Had the Following Occur in the Current Year: •

question 30

Multiple Choice

Gwen had the following occur in the current year: • Car wreck - repairs were $2,000, insurance paid $1,000.
• fteft of boat from lake house in December - fair market value = $10,000, cost = $15,000. She didn't discover the theft until the next taxable year.
• Storm damage to lake house - FMV before = $200,000, after = $150,000, insurance paid $20,000.
If Gwen's AGI is $60,000, what is her net casualty loss deduction in the current year?

• A) $0
• B) $24,800
• C) $36,700
• D) $41,000
• E) None of the above

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Definitions:

Corporate Debts

Obligations that a corporation owes to creditors, which can include bank loans, bonds, and other forms of borrowing.

Revised Act

A legal document that has been updated or amended from its original version to reflect changes in the law or practice.

Incorporators

Individuals who prepare and sign the articles of incorporation for a new corporation, formally establishing the entity.

Certificate

A document verifying the ownership or status of something, often used in legal, academic, or financial contexts.