^Kori^: 16. John had adjusted gross income of $60,000 in 2020. During the year, his personal use summer home was damaged by a fire. Pertinent data with respect to the home follows:

Cost basis $260,000 Value before the fire 400,000 Value after the fire 100,000 Insurance recovery 270,000 John had an accident with his personal use car. As a result of the accident, He was cited with reckless driving and willful negligence. Pertinent data with respect to the car follows:

Cost basis $80,000 Value before the accident 56,000 Value after the accident 20,000 Insurance recovery 18,000 What is Johns itemized casualty loss deduction?

^Kori^: 17. Amanda sued her former employer for a back injury she suffered on the job in 2020. As a result of the injury, she was partially disabled. In 2021, she received $172,000 for her loss of future income, $160,000 in punitive damages because of the employers flagrant disregard for the employees safety, and $12,000 for medical expenses. The medical expenses were deducted on her 2020 return, reducing her taxable income by $9,000. Amandas 2021 gross income from the above is:

^Kori^: 18. On January 2, 2020, David acquires a business from Steven. Among the assets purchased are the following intangibles: patent with a 7-year remaining life, a covenant not to compete for 10 years, and goodwill. Of the purchase price, $150,000 was paid for the patent and $20,000 for the covenant. The amount of the excess of the purchase price over the identifiable assets was $100,000. What is the amount of the amortization deduction for 2020?

^Kori^: Under Swan Companys cafeteria plan, all full-time employees are allowed to select any combination of the following benefits, but the total received by each employee cannot exceed $8,000 a year.

I. Group medical and hospitalization insurance for the employee, $3,600 a year. II. Group medical and hospitalization insurance for the employees spouse and children, $1,200 a year. III. Child care payments, actual cost but not more than $4,800 a year. IV. Cash required to bring the total of benefits and cash to $8,000. Which of the following statements is true?

A. Sam, a full-time employee, selects choices II and III and $2,000 cash. His gross income must include the $2,000. B. Paul, a full-time employee, elects to receive $8,000 cash because his wifes employer provides these same insurance benefits, which would cover him (II). Paul is not required to include the $8,000 in gross income. C. Sue, a full-time employee, elects to receive choices I, II, and $3,200 for III. Sue is required to include $3,200 in gross income. D. All of these.

^Kori^: 20. Roger is in the 35% marginal tax bracket. Rogers employer has created a flexible spending account for medical and dental expenses that are not covered by the companys health insurance plan. Roger had his salary reduced by $1,200 during the year for contributions to the flexible spending plan. However, Roger incurred only $1,100 in actual expenses for which he was reimbursed. Under the plan, he must forfeit the $100 unused amount. His after-tax cost of overfunding the plan is $65. True False