On December 17 of the current year, Kelly's business office safe is burglarized . The theft is discovered a few days after the burglary. $3,000 cash from the cash registers is stolen. A diamond necklace and a ring that Kelly frequently wore are stolen. The necklace cost Kelly $2,300 many years ago and is insured for its $6,000 FMV. Kelly purchased the ring for #3,000 just two weeks before the burglary. Unfortunately, the ring and the cash are not insured. Kelly's AGI for the year, not including the items noted above is $70,000.

A. What is Kelly's deductible theft loss in the current year? Enter the amount of theft gain (loss) for each item to determine the net theft gain (loss) to be reported on Kelly's tax return in the current year. ( Enter a loss with a minus sign or parentheses).

Asset Theft Gain (loss)

Cash _________

Necklace __________

Ring ___________

B. What is Kelly's deductible theft loss in the current year if the theft is not discovered until January of the following year?

Under this fact pattern, the net theft gain (loss) in the current year would be