Derrick owns a farm in eastern North Carolina. A hurricane hit the area and destroyed a farm building and some farm equipment and damaged a barn FMV Damage 55,800 Adjusted before FMV after Insurance Item Basis Building97,100 $129,700 $ Equipment Barn Damage Proceeds 0 $64,500 24,400 34,800 82,300 118,500 169,500 118,500 Due to the extensive damage throughout the area, the President of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $51,300 of taxable income last year. Their taxable income for the current year is $168,900, excluding the loss from the hurricane a-1. Calculate the amount of the loss deductible by Derrick and his wife a-2. What amount of loss should be adjusted against current and last year? a- Loss Amount a Last year 2 Current year Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her entertainment expenses for her clients include the following: Cab fare to and from restaurants 500 Gratuity at restaurants Meals Cover charges at restaurants 450 4,750 400 Jackie also held a holiday party for her employees, which cost $1,800. All expenses are reasonable. a. How much can Jackie deduct from these expenses? b. How is the deduction classified? a. How much can Jackie deduct from these expenses? b. How is the deduction classified? Complete this question by entering your answers in the tabs below. Req 1 Req 2 How much can Jackie deduct from these expenses? 500 Cab Fare Gratuity Meals Cover Charges Holiday party