In 2019, Mary had the following items: $$\begin{array} { l r }
\text { Salary } & \$ 30,000 \
\text { Personal use casualty gain } & 10,000 \
\text { Personal use casualty loss (after } \$ 100 \text { floor) } & 17,000 \
\text { Other itemized deductions } & 4,000
\end{array}$$ Assuming that Mary files as head of household (has one dependent child), determine her taxable income for 2019.
A)$11,650
B)$12,800
C)$13,900
D)$21,900
E)None of these.

Question

In 2019, Mary had the following items: $$\begin{array} { l r } 
\text { Salary } & \$ 30,000 \
\text { Personal use casualty gain } & 10,000 \
\text { Personal use casualty loss (after } \$ 100 \text { floor) } & 17,000 \
\text { Other itemized deductions } & 4,000
\end{array}$$ Assuming that Mary files as head of household (has one dependent child), determine her taxable income for 2019.
A)$11,650
B)$12,800
C)$13,900
D)$21,900
E)None of these.

Quizplus · Accepted Answer

The correct answer is A because the taxable income is $30,000 (salary) - $10,000 (personal use casualty gain) + $17,000 (personal use casualty loss) - $4,000 (other itemized deductions) = $11,650.

In 2019, Mary Had the Following Items Assuming That Mary Files as Head of Household (Has One