QUESTION 7

1. In 2018, Wally had the following insured personal casualty losses (arising from one casualty in a Federally-declared disaster area). Wally also had $42,000 AGI for the year before considering the casualty.

   		Fair Market Value
   Asset	Adjusted Basis	Before	After	InsuranceRecovery
   A	$9,200	$8,000	$1,000	$2,000
   B	3,000	4,000	-0-	1,000
   C	3,700	1,700	-0-	900

   Wallys casualty loss deduction is:

   	a.	$1,500
   	b.	$4,800
   	c.	$3,500
   	d.	$1,600

QUESTION 8

1. In 2018, Mark has $18,000 short-term capital loss, $7,000 28% gain, and $6,000 0%/15%/20% gain. Which of the statements below is correct?

   	a.	Mark has a $5,000 net capital gain.
   	b.	Mark has a $3,000 capital loss deduction
   	c.	Mark has a $5,000 capital loss deduction
   	d.	Mark has a $13,000 net capital gain.