Question

Loss from theft of securities $(5,000)

Personal casualty gain 4,000
Personal casualty loss (3,000)
The amount of Woodrow's deduction from these losses would be:
a.$8,000.
b.$4,000.
c.$0.
d.$5,000.
e.$3,000.

Answer 1

The amount of Woodrow's deduction from these losses would be a) $8,000.

Step-by-step explanation:

To calculate the amount of Woodrow's deduction from the losses listed, we need to consider the tax treatment of theft and casualty losses. The amount of Woodrow's deduction from these losses would be $8,000 (option a).

Woodrow's total losses from theft of securities and personal casualty losses amount to $8,000. Since these losses can be deducted for tax purposes, Woodrow can deduct the full amount of $8,000 from his taxable income.