Ivy Gordon's home in Charleston was recently gutted in a fire. Her living and dining rooms were destroyed completely, and the damaged personal property had a replacement price of $36,000. The average age of the damaged personal property was 5 years, and its useful life was estimated to be 13 years. What is the maximum amount the insurance company would pay Ivy, assuming that it reimburses losses on an actual cash-value basis and has a $500 deductible? Assume that the total coverage requirement is met. Do not round intermediate calculations. Round the answer to the nearest cent.

Julie Andrews was severely injured after she fell into an open manhole in the city. She is suing the Department of Roadworks. Testimony was provided in the trial that Julie will be unable to work for five years. The jury is considering the damages that should be awarded to Julie and will include the following: (a) The present value of the last two years' pay. Julie Andrews' annual salary for the last two years would have been $53,000 and $56,000, respectively. (b) The present value of five years' future salary. Julie Andrews' salary is assumed to be $59,000 per year. 4 (c) $180,000 for her injuries. (d) $25,000 for her legal costs. Assume that her salary is paid in equal amounts at the end of each month. The interest rate is an effective annual rate of 11 percent. What is the dollar value of the damages payment to Julie Andrews? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Award

Virginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $5,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss? a.$4,000 b.$5,000 c.$14,000 d.$10,000 e.None of these choices are correct.

Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted to repossess $3,300 Physical damage to her arm caused by the collector $15,000 Loss of income while her arm was healing $6,000 Punitive damages $80,000 Question Content Area a.  Regarding Leigh's settlement, classify the following as either "Included in" or "Excluded from" her gross income.     Included in/Excluded fromIncome • Damage to her automobile that the collector attempted to repossess   • Physical damage to her arm caused by the collector   • Loss of income while her arm was healing   • Punitive damages     Question Content Area b.  Assume that Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $25,000 included in Leigh's gross income?

You have an HO policy with the following limits: A $75,000 (dwelling) B-$ 7,500 (other structures) C-$25,000 (personal property). A tornado strikes your property. You lose your house, which is worth $65,000 at the time of the loss. You also lose an unattached shed worth $8,000, and personal property worth $30,000. You will collect? (assume $0 deductible, ignore the ACV calculation and assume there is no fraud or other unusual circumstances surrounding the loss.) OA$107,500 OB. $97,500 OC.$103,000

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Jorge and his wife own a beachfront vacation home in Savannah, Georgia. During the year, high winds from a tropical storm shatter a sliding glass door and rain from the storm causes extensive water damage to the kitchen. The Savannah area qualified for federal disaster relief. Fortunately, during a calm in the storm, Jorge is able to board up the door, which limits the water damage to the kitchen. The items damaged in the storm are:   Cost ValueBefore ValueAfter InsuranceProceeds Kitchen furniture $2,085   $1,325   $430   $510     TV 265   200   0   115     Refrigerator 1,000   920   90   775     Linoleum flooring 1,645   880   0   470     In addition, Jorge pays $610 to replace the sliding glass door. The insurance company will not reimburse him for the cost of the new door because the old sliding glass door did not meet the company's standards for a hurricane area. The amount of Jorge's casualty loss before considering any annual limitations that may apply is…

While driving Mohamed's car Sarah accidentally crashed and hit a house, the loss costs a total of 2,033. If in this case Mohamed's insurance policy acted as the primary with a limit of 743, while Sarah's policy acts as the excess and has a limit of 3,663. In this case how much will Sarah's insurance policy pay?

Equipment that Kevin used in his business was completely destroyed in a fire.   At the time of the fire, the equipment had a fair market value of $40,000 and an adjusted basis of $36,000.  He received an insurance recovery of $16,000.  If Kevin’s AGI for the year is $100,000, determine his deductible loss on the equipment.   Options: a.) $20,000 b.) $9,900 c.) $24,000 d.) $0 e.) $40,000

A hurricane (in a federally declared disaster are) destroys Kirk’s boat in 2020.  The boat is worth $40,000, and Kirk paid $30,000 for the boat two years ago.  The boat is a personal use asset.  Kirk’s AGI for 2020 is $40,000.    a.  What is the casualty deduction that Kirk can take as an itemized deduction in 2020?