1a. Kerrys car is totaled in an auto accident. The car originally cost $18,000, but is worth $7,500 at the time of the accident. Kerrys insurance company gives her a check for $7,500. Kerry has $30,000 of AGI. How much can Kerry claim as a casualty loss on her tax return?

1b. Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2016, Dianes wages are $17,700 and she received dividend income of $700. Calculate Dianes earned income credit using the Earned Income Table in Appendix B (or from the irs.gov website).