a. John's car was completely destroyed by fire in 2010. Its cost and fair market value were $8,000. John's claim against insurance was $3,000 and was NOT made until 2011. The following year, 2011, John settled with the insurance company for $2,000. What are John's deductions for 2010 and 2011 based on the above information if 1) the car was used for personal property and 2) business property?
b. Elaine provides more than half of the spport for her son James, who does NOT live with her. James is 26 and is a full-time law student. He earns $2,000 from a part-time job. He has a $11,000 scholarship covering his tuition. May Elaine claim James as a dependent? Fully explain.
c. In 2009, David had the following transactions:
Salary $75,000
Capital loss from a stock investment (6,000)
Moving expense to change jobs (12,500)
Received repayment of $9,000 loan he made to a friend in 2007 (also interest of $900) 9,900
Property taxes on personal residence 1,500
Based on the information given above, determine David's AGI. Be sure to show your work.