Answer the following questions and explain.

1.In the current tax year, Gunther earned $125,000 from his job as a civil engineer. In addition, he received $30,000 of income from Activity A, and lost $40,000, and 20,000 from Activities B and C respectively. Activities A, B, and C are passive activities that Gunther acquired in the current year. What amount of loss may Gunther deduct on his current year taxes? What amount of loss, if any, must be carried over to the subsequent year for each activity?

2.In 2019, Clark's residence had an adjusted basis of $250,000 and it was destroyed by a tornado. The residence was located in a federally declared disaster area. An appraiser valued the decline in market value at $425,000. Later that same year, Clark received $200,000 from his insurance company for the property loss and did not elect to deduct the casualty loss in an earlier year. Clark's 2019 adjusted gross income was $100,000, and he did not have any casualty gains. What is total amount that Clark can deduct as a 2019 itemized deduction for casualty loss, after the application of the threshold limitations?