3. Julia had a deductible casualty logs of S10,000 in Year 1. Her taxable income for Year I was $55,000. In Year 2, Martha was reimbursed 57,000 for the casuahy loss: How much incomme mus! Julia report in Year 2 for the reimbursement? ! b. 53,000 c. 57,000 d. 510,000 12. Marshauis married and owns her own business. She uses the cash receipts and disbursements method for tax purposes. During the current year her income, expenses, and other items were as follows: Grow receipts $40,000 Cost of goods sold $24,000 General expenses $14,000 Uncollectible accounts receivable $6,000 What is Martha's current year bad debt expense deduction for tax purposes? b. $2,000 c. $3,000 d. $6,000 13. Marsha is married and owns her own business. She uses the accrual method for tax purposes. During the current your her incorne, expenses, and other items were as follows: Gross receipts 540,000 Cost of goods sold 524,000 General expenses $14,000 Uncollectible accounts receivable $6,000 What is Marsha's current year bad debt expense deduction for tax purposes? #. S-O- b. $2,000 c. $3,000 +. John files a return as a single taxpayer. In 2018, he had the following items: Salary of $40,000. Loss of $65,000 on the sale of $ 1244 stock acquired two years ago. Interest income of $6,000. Determine John's AGI for 2018. a. ($5,000). b. $0. c. $45,000 d. $51,000. e. None of the above. 70. Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2018. The car's adjusted basis at the time of the accident was $13,000. Its fair market value was $10,000. The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,000 (before considering the loss). What is Norm's deductible loss? 1- Amold was employed during the first six months of the year and earned a $86,000 salary. During the next 6 months, he collected $4,800 of unemployment compensation, borrowed $6,000 (using his personal residence as collateral), and withdrew $1,000 from his savings account (including $60, interest). His luck was not all bad, for in December he won $800 in the lottery on a $20 ticket. Because of his dire circumstances, Amold's parents loaned him $10,000 (interest-free) on July 1 of the current year, when the Federal rate was 8%. Arnold did not repay the loan during the year and used the money for living expenses. Calculate Arnold's adjusted gross income for the year. 2- Al single, age 60, and has gross income of $140,000. His deductible expenses are as follows: Alimony $20,000 Charitable contributions 4,000 Contribution to a traditional IRA 5,000 Expenses paid on rental property 7,500 Interest on home mortgage and property taxes on personal residence 7,200 State income tax 2,200 What is Al's AGI? Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida, and wants to expand to other states. During 2012, she spends $14,000 to investigate TV rental stores in South Carolina and $9,000 to investigate TV rental stores in Georgia. She acquires the South Carolina operations, but not the outlets in Georgia. As to these expenses, Iris shouldeMPENSE ? Jack received a court award in a civil libel and siander suit against National Gossip. He received $120,000 for damages to his professional reputation, $100,000 for damages to his personal reputation, and $50,000 in punitive damages. Jack must include in his gross income as a damage award