In the current year,Marcus reports the following casualty gains and losses on personal-use property.Assets X and Y are destroyed in the first casualty while Z is destroyed in a second casualty. As a result of these losses and insurance recoveries,Marcus must report

Question

In the current year,Marcus reports the following casualty gains and losses on personal-use property.Assets X and Y are destroyed in the first casualty while Z is destroyed in a second casualty.  As a result of these losses and insurance recoveries,Marcus must report

Quizplus · Accepted Answer

- Asset X is reported as a long-term capital gain of $5,000 since it was held for more than one year.
- Asset Y is reported as a short-term capital loss of $900 since it was held for one year or less.
- Asset Z is reported as a short-term capital loss of $200 since it was held for one year or less.
The net gain or loss is not given in the problem, so option A can be eliminated. Option B reports a long-term gain on asset X of $4,900, which is incorrect since it was held for more than one year. Option D reports a short-term capital loss of $300 on asset Z, which is also incorrect since the loss was $200. Therefore, the best choice is C.

In the Current Year,Marcus Reports the Following Casualty Gains and Losses