In 2012, Morley, a Single Taxpayer, Had an AGI of $30,000

question 89

Multiple Choice

In 2012, Morley, a single taxpayer, had an AGI of $30,000 before considering the following items: Determine the amount of Morley's itemized deduction from the losses.

• A)$0.
• B)$2,900.
• C)$5,120.
• D)$5,600.
• E)None of the above.

---

Definitions:

Mutual Mistake

A legal doctrine where both parties entering into a contract have an incorrect belief about an important fact, potentially rendering the contract voidable.

Unilateral Mistake

A legal concept wherein one party to a contract is mistaken about a fundamental fact or term of the agreement.

Subsurface Soil Condition

Refers to the properties and characteristics of the soil beneath the surface, important for construction and agricultural activities.

Voidable

A term referring to a valid agreement that may be legally declared invalid by one of the parties.