Wes owned a business which was destroyed by fire in May 2016. Details of his losses follow: \[\begin{array} { c c c c c } & \text { Adj. } & \text { FMV } & \text { FMV } & \text { Insurance } \\ \text { Asset } & \text { Easis } & \text { Blefore } & \text { After } & \text { Reimbursement } \\ \text { A } & \$ 1,000 & \$ 2,000 & \$ 0 & \$ 2,000 \\ \mathrm { E } & 15,000 & 10,000 &3 , 0 0 0 & 2,000 \\ \mathrm { C } & 2,400 & 5,000 & 2,500 & 1,000 \end{array}\] His AGI without consideration of the casualty is $45,000. What is Wes's net casualty loss deduction for 2016?

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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. \[\begin{array} { | l | r | r | r | c | } \hline \text { Asset } & \begin{array} { c } \text { Reduction } \\ \text { in FMV } \end{array} & \text { Adjusted Basis } & \text { Insurance } & \begin{array} { c } \text { Holding } \\ \text { Period } \end{array} \\ \hline X & \$ 8,000 & \$ 2,000 & \$ 7,000 & 2 \text { years } \\ \hline Y & 3,000 & 5,000 & 2,000 & 10 \text { months } \\ \hline Z & 2,500 & 1,300 & 1,000 & 8 \text { months } \\ \hline \end{array}\] As a result of these losses and insurance recoveries, Marcus must report

A) a net gain of $3,700. B) a long-term gain of $4,900 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $200 on asset Z. C) a long-term capital gain of $5,000 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $200 on asset Z. D) a long-term capital gain of $5,000 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $300 on asset Z. A) a net gain of $3,700. B) a long-term gain of $4,900 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $200 on asset Z. C) a long-term capital gain of $5,000 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $200 on asset Z. D) a long-term capital gain of $5,000 on asset X; a short-term capital loss of $900 on asset Y; and a short-term capital loss of $300 on asset Z.

Jana reports the following income and loss: \[\begin{array} { | l | r | } \hline \text { Salary } & \$ 120,000 \\ \hline \text { Income from activity A } & 60,000 \\ \hline \text { Loss from activity B } & ( 30,000 ) \\ \hline \text { Loss from activity C } & ( 70,000 ) \\ \hline \end{array}\] Activities A, B, and C are all passive activities. Based on this information, Jana has the following suspended losses:

A) \[\begin{array} { | l | l | } \hline \text { Activity B } & \text { Activity C } \\ \hline \$ 30,000 & \$ 70,000 \\ \hline \end{array}\] B) $\begin{array}{|l|l|}\hline \text { Activity B } & \text { Activity C } \\ \hline\$ 0 & \$ 0\\\hline \end{array}$ C) \[\begin{array} { | l | l | } \hline \text { Activity B } & \text { Activity C } \\ \hline \$ 18,000 & \$ 42,000 \\ \hline \end{array}\] D) \[\begin{array} { | l | l | } \hline \text { Activity B } & \text { Activity C } \\ \hline \$ 12,000 & \$ 28,000 \\ \hline \end{array}\] A) \[\begin{array} { | l | l | } \hline \text { Activity B } & \text { Activity C } \\ \hline \$ 30,000 & \$ 70,000 \\ \hline \end{array}\] B) $\begin{array}{|l|l|}\hline \text { Activity B } & \text { Activity C } \\ \hline\$ 0 & \$ 0\\\hline \end{array}$ C) \[\begin{array} { | l | l | } \hline \text { Activity B } & \text { Activity C } \\ \hline \$ 18,000 & \$ 42,000 \\ \hline \end{array}\] D) \[\begin{array} { | l | l | } \hline \text { Activity B } & \text { Activity C } \\ \hline \$ 12,000 & \$ 28,000 \\ \hline \end{array}\]