Perform Chapter 6 Problem 5 , 37 & 38 ( pages 6-34 & 37 in the text ) and Chapter 7 Problem 13 , 18 , 32 , 47 ( pages 7-30 , 31 , 32 & 34 in the text )
5 . LO . 1 Classify each of the following expenditures as a deduction for AGI , a deduction from AGI , or not deductible :
37 . LO . 2 Duck , an accrual basis corporation , sponsored a rock concert on December 29 , 2014 . Gross receipts were $ 300,000 . The following expenses were incurred and paid as indicated :
38 . LO . 3 Doug incurred and paid the following expenses during the year :
13 . LO . 4 Mary ’ s diamond ring was stolen in 2013 . She originally paid $ 8,000 for the ring , but it was worth considerably more at the time of the theft . Mary filed an insurance claim for the stolen ring , but the claim was denied . Because the insurance claim was denied , Mary took a casualty loss for the stolen ring on her 2013 tax return . In 2013 ,
Mary had AGI of $ 40,000 . In 2014 , the insurance company had a “ change of heart ” and sent Mary a check for $ 5,000 for the stolen ring . Discuss the proper tax treatment of the $ 5,000 Mary received from the insurance company in 2014 .