In a deductible casualty or theft, the basis of property involved is reduced by the amount of insurance proceeds received and by any resulting recognized loss.

a. True

b. False

Under the Federal income tax formula for individuals, a choice must be made between claiming deductions for AGI and itemized deductions.

a. True

b. False

7. Under the income tax formula, a taxpayer must choose between deductions for AGI and the standard deduction.

a. True

b. False

8. An above-the-line deduction refers to a deduction for AGI.

a. True

b. False