In 2012,Morley,a single taxpayer,had an AGI of $30,000 before considering the following items: Determine the amount of Morley's itemized deduction from the losses.

Question

In 2012,Morley,a single taxpayer,had an AGI of $30,000 before considering the following items:  Determine the amount of Morley's itemized deduction from the losses.

Quizplus · Accepted Answer

From the given information, we can infer that the casualty loss and theft loss are both deductible as itemized deductions subject to certain limitations. To determine the total amount of the losses, we add them up:

$2,400 (casualty loss) + $3,200 (theft loss) = $5,600

Since Morley's AGI is $30,000, we can subtract this amount from the total losses to determine the deductible amount:

$5,600 - 10% × $30,000 = $5,600 - $3,000 = $2,600

Therefore, Morley's itemized deduction from the losses is $2,600, which is closest to choice D ($5,600).

In 2012,Morley,a Single Taxpayer,had an AGI of $30,000 Before Considering