Dear gbisht, Please review the attached questions...

1) Passive Losses. In the current year Clay reports income and losses from the following activities: Activity X $28,000 Activity Y (10,000) Activity Z (20,000) Salary 100,000 Activities X, Y, and Z are all passive with respect to Clay. Activity Z has $40,000 in passive losses which are carried over from the prior year. In the current year Clay sells activity Z for a taxable gain of $30,000. a. What is the amount of loss that Clay may deduct and what is the amount that must be carried over in the current year? b. Based solely on the amounts above, compute Clay's AGI for the current year. 2) PersonalUse Casualty Losses. In the current year Ned completely destroys his personal automobile (purchased two years earlier for $28,000) in a traffic accident. Fortunately none of the occupants are injured. The FMV of the car before the accident is $18,000; after the accident it is worthless. Ned receives a $14,000 settlement from the insurance company. Later in the same year his house is burglarized and several antiques are stolen. The antiques were purchased a number of years earlier for $8,000. Their value at the time of the theft is estimated at $12,000. They are not insured. Ned's AGI for the current year is $60,000. What is the amount of Ned's deductible casualty loss in the current year, assuming the thefts are discovered in the same year