1. Jim was in an auto accident this year. Jim paid $3,940 to repair his personal-use car after the accident and his insurance only reimbursed him $425. Jim bought his car several years ago for $1,960. What is the amount of casualty loss from this accident before Jim applies any casualty loss floor limitations?

$3,940.

$3,515.

$1,960.

$1,535.

None of the choices are correct.

2. Grace is employed as the manager of a sandwich shop. This year she earned a salary of $46,700 and incurred the following expenses associated with her employment:

Subscriptions to food publications	$470
Cooking class (How to make better subs)	420
Transportation between Graces home and the shop	755

What amount of miscellaneous itemized deductions can Grace claim on Schedule A if these are her only miscellaneous itemized deductions?

None of the choices are correct.

$235.

$285 if Grace was reimbursed $135 for her cooking class.

$1,645.

$890.