Reference no: EM134037
Question :
In the existing year Alice reports $150,000 of salary income, $20,000 of income from activity X, and $35,000 and $15,000 losses from activities Y and Z, correspondingly. All three activities are passive with respect to Alice and are purchased during the existing year.
1. Evaluate the amount of loss or Activity X?
25,000
20,000
21,000
35,000
2. Evaluate the amount of loss for Activity Y?
30,000
35,000
15,000
20,000
3. Determine the amount of loss for Activity Z?
15,000
30,000
35,000
20,000
4. This data is used for questions 4 & 5:
On 17th December, 2010, 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 regularly wore are also 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 adding the items noted above, is $70,000.
What is Kelly's deductible theft loss in the existing year?
$ (300)-Loss
6,000
3,000
800-gain
5. What is Kelly's deductible theft loss in the existing year if the theft is not discovered, until January of the subsequent year?
1000
3,000
0
6,000