ACCT 324 help A Guide to career/Snaptutorial ACCT 324 help A Guide to career/Snaptutorial | Page 16

was $14,000 (before considering the loss). What is Norm's deductible
loss?
16. (TCO 3) During the year, Grant's personal residence was damaged
by fire. Grant was insured for 90% of his actual loss, and he received
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
$170,000
Value before casualty
$250,000
Value after casualty
$150,000
What is Grant's allowable casualty loss deduction?
17. (TCO 3) Hannah makes the following charitable donations in the
current year:
Basis
Fair Market
Value
Inventory held for resale in Hannah's business
(a sole proprietorship)
$8,000
$7,200
Stock in HBM, Inc., held as an investment
(acquired four years ago)
$16,000
$40,000
Baseball card collection held as an investment
(acquired six years ago)
$4,000
$20,000
The HBM stock and the inventory were given to Hannah's church,
and the baseball card collection was given to the United Way. Both
donees promptly sold the property for the stated fair market value.