Question

Woodrow has a salary of $30,000 and experienced the following losses:

Loss from theft of securities$(5,000)
Personal casualty gain4,000
Personal casualty loss(3,000)
The amount of Woodrow's deduction from these losses would be:_____

Answer 1

Woodrow's deduction from the losses would be $4,000, which is determined by summing the loss from the theft of securities, the personal casualty gain, and the personal casualty loss.

Step-by-step explanation:

The question asks us to calculate the amount of Woodrow's deduction from the losses he has experienced, which include a loss from theft of securities, a personal casualty gain, and a personal casualty loss. To find the amount of the deduction, we must consider each of these amounts.

Loss from theft of securities: $(5,000)
Personal casualty gain: $4,000
Personal casualty loss: $(3,000)
When determining deductions, we subtract the gains from the losses: $(5,000) (theft loss) + $4,000 (casualty gain) + $(3,000) (casualty loss) = $(5,000) + $4,000 - $3,000 = $(4,000). Therefore, the amount of Woodrow's deduction would be $4,000.