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Sagot :
Answer:
A. $17,400
B. $40,000
Explanation:
A. Calculation to determine How much of the casualty loss will be deductible by Wilson
Using this formula
Itemized deduction = Casualty loss - Insurance recovery -$100 - 10% of AGI (ADJUSTER GROSS INCOME)
Let plug in the formula
Itemized deduction= $90,000 - $50,000 - $100- $225000*10%
Itemized deduction=$90,000 - $50,000 - $100-$22,500
Itemized deduction=$ 17,400
Therefore the amount of casualty loss that will be deductible by Wilson is $17,400
b. Calculation to determine How much of the casualty loss will be deductible by Wilson if Wilson is a corporation, and the insurance recovered was $50,000
Using this formula
Deduction if it is a C Corp = Casualty loss - Insurance recovery
Let plug in the formula
Deduction if it is a C Corp=$90,000 -$50,000
Deduction if it is a C Corp=$40,000
Therefore the amount of the casualty loss that will be deductible by Wilson if Wilson is a corporation, and the insurance recovered was $50,000 is $40,000
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