In 2017,the U

question 85

Multiple Choice

In 2017,the U.S.President declared a federal disaster in Arizona due to wild fires.Hamed lives in the affected area and lost his home in the fires.What choice does he have regarding when he can claim the loss on his tax return?

• A)It must be claimed in 2016 if the return has not been filed by the date of the loss.
• B)It must be claimed in 2017 if the loss is greater than Hamed's modified adjusted gross income.
• C)It may be claimed in 2018 if an election is filed with Hamed's 2017 return.
• D)It may be claimed in either 2016 or 2017.

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Definitions:

Good Substitutes

Products or services that can be used in place of one another, satisfying the same needs or wants of the consumer.

Elastic

Describes demand or supply that is highly sensitive to changes in price; a small change in price leads to a large change in the quantity demanded or supplied.

Perfectly Inelastic

Describing a situation where demand or supply does not change in response to changes in price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.