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andrezito [222]
2 years ago
6

In 2018, Grant’s personal residence was completely destroyed by fire. Grant was insured for 100% of his actual loss, and he rece

ived the insurance settlement. Grant had adjusted gross income, before considering the casualty item, of $30,000. Pertinent data with respect to the residence follows: Cost basis $280,000Value before casualty 250,000Value after casualty What is Grant's allowable casualty loss deduction? (A) $10,000(B) $6,900(C) $80,000(D) $6,500(E) $0
Business
1 answer:
gizmo_the_mogwai [7]2 years ago
5 0

Answer:

(E) $0

Explanation:

The answer is $0  

because you can only deduct losses not reimbursed or reimbursable by insurance or other means. The losses from casualty item are not deductible.

So, the correct answer is  (E) $0

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8 0
3 years ago
Jackson has the choice to invest in city of Mitchell bonds or Sundial, Inc. corporate bonds that pay 5.6 percent interest. Jacks
marshall27 [118]

Answer: 4.37%

Explanation:

As interest is tax deductible, the Sundial Interest needs to be adjusted for tax to find out the true return.

Jackson as a single tax payer earning $47,500 in 2019 has a tax rate of 22% according to the IRS Tax bracket for that year.

That means that the interest that true interest that Sundial is offering him is,

= 5.6 * ( 1 - tax rate)

= 5.6 * ( 1 - 0.22)

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To make Jackson indifferent with the same amount of risk, the city of Mitchell would have to offer him the same interest that Sundial is offering net of tax which is 4.37%.

8 0
2 years ago
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11111nata11111 [884]

Answer:

Straight rebuy

Explanation:

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5 0
2 years ago
_____ is the process for reviewing key roles and determining the readiness levels of potential internal and external candidates
lapo4ka [179]
I thinks it’s B but dont take my word
8 0
3 years ago
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Dafna11 [192]

Answer:

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8 0
2 years ago
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