1)

1. In 2021, John had the following insured personal casualty losses (arising from one casualty in a Federally-declared disaster area). John also had $45,000 AGI for the year before considering the casualty.

   		Fair Market Value
   Asset	Adjusted Basis	Before	After	Insurance Recovery
   A	$9,200	$8,000	$1,000	$2,000
   B	3,000	4,000	-0-	1,000
   C	3,700	1,700	-0-	900

   John's casualty loss deduction is:

   	a.	$3,200
   	b.	$1,500
   	c.	$3,100
   	d.	$7,800

2)

1. Andy, a calendar year taxpayer, owns a warehouse (adjusted basis of $190,000) which is destroyed by a tornado in November 2019. He receives insurance proceeds of $250,000 in January 2020. If before 2022, Andy replaces the warehouse with another warehouse costing at least $190,000, he can elect to postpone the recognition of any realized gain.

   True

   False

3)

Realizing that providing for a decent retirement is up to them, Hank and Sarah begin contributing regularly to their IRAs. This year, they each make a $5,000 contribution to a traditional IRA. The maximum credit percentage rate for taxpayers filing a joint return applies for AGI between 0 and $39,500. If Hank and Sarah's AGI is $37,000 on their joint return, what is the amount of their credit for certain retirement plan contributions?

	a.	$10,000
	b.	$1,000
	c.	$5,000
	d.	$2,000