Shivank and Claudia are MFL and had the following items for 2017:

Salary $183,000

Loss on sale 1244 small business stock acquired 3 years ago* (110,000)

Stock acquired 2 years ago became worthless during the year* (10,000)

Long-term capital gain: 25,000

Nonbusiness bad debt* (9,000)

Shivank had a car accident during the year in which his car was completely destroyed. At the time of the accident, the car had a fair market value of $30,000 and an adjusted basis of $40,000. He used the car 100% of the time for personal use. He received an insurance recovery of $21,000.

1. Provide a detailed calculation of the couple's AGI. Your answer should also include any applicable rules, exceptions to rules, limitations, tax treatment of all items that have an * next to them.

2. a. What is the rule for calculating the amount of the casualty loss?

b. Apply the rules to the facts and show a detailed calculation of the loss.

c. Which schedules/lines do the loss appear on?