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Gambling winnings claimed on the federal return were $1000. This includes 2 Oregon lottery tickets that won $300 each. Gambling losses of $750 were claimed on Schedule A of which $150 was OR lottery expense. How much is the OR addition?

a. $150.
b. $350.
c. $400.
d. $600.

1 Answer

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Final answer:

The OR addition for the gambling winnings should be the Oregon lottery winnings of $600 minus the $150 in reported losses, totaling $450. However, since this is not an option and assuming the OR lottery expense is an addition, the closest provided answer is $600, representing the total Oregon lottery winnings.

Step-by-step explanation:

The question pertains to the calculation of an Oregon (OR) addition based on gambling winnings and losses as reported on a federal tax return. The federal return shows gambling winnings of $1,000, which includes two Oregon lottery tickets with winnings of $300 each, totaling $600. Gambling losses of $750 were claimed on Schedule A, of which $150 was an Oregon lottery expense. The Oregon addition would be the amount of the Oregon lottery winnings not offset by the reported Oregon lottery losses. Since $300 in winnings x 2 tickets = $600 in winnings, and losses were $150, the Oregon addition is the winnings minus the losses, or $600 - $150 = $450. However, this result is not one of the provided options, which suggests there may be a typographical error in the question or options. According to the options provided, the closest correct answer, by understanding the OR lottery expense as an addition, would be $600, since the total winnings are $600 and no losses can be deducted as per the instructions.

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