8 - a. $400. b. $600. c. $1,000. d. $1,400. e. None of the...

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____ 8. During the year, Rick had the following insured personal casualty losses (arising from one casualty). Rick also had $18,000 AGI for the year. Fair Market Value Insurance Asset Adjusted Basis Before After Recovery A $ 500 $ 700 $300 $100 B 3,000 2,000 -0- 500 C 700 900 -0- 200 Rick’s casualty loss deduction is:
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Unformatted text preview: a. $400. b. $600. c. $1,000. d. $1,400. e. None of the above. 8. ANS: A Asset A $ 300 Asset B 1,500 Asset C 500 $2,300 Less: Statutory floor (100) Less: AGI limitation (10% $18,000) (1,800) Casualty loss deduction $ 400 PTS: 1 REF: p. 7-10 to 7-13...
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