Reg - Different From Backer

Question 1

Wages	$ 5,000
Interest on savings account	1,000
Net rental income	4,000
Net business loss	(16,000)
Net short-term capital loss	( 2,000)
AGI	( 8,000)
Deductions:	
Personal exemption	$ 3,800
Standard deduction	5,950
Taxable Loss	(17,750)
Adjustments to arrive at NOL carry back or carry forward (Use Form 1045, Schedule A for calculation purposes.)

$17,750 TAXABLE LOSS
Plus $ 3,800 Personal exemption, Destry cannot deduct his personal exemption.
Plus $4,950 Adjustment for deductions that are not connected to a trade or business or employment, such as the standard deduction of $5,950 reduced by the non-business income of $1,000 interests from savings.
Plus $ 2,000 Short term capital loss as adjusted by business capital gains and losses (-0-).
($ 7,000) Correct carry back or forward

Answer 1

Wages	$ 5,000
Interest on savings account	1,000
Net rental income	4,000
Net business loss	(16,000)
Net short-term capital loss	( 2,000)
AGI	( 8,000)
Deductions:	
Personal exemption	$ 3,800
Standard deduction	5,950
Taxable Loss	(17,750)
Adjustments to arrive at NOL carry back or carry forward (Use Form 1045, Schedule A for calculation purposes.)

$17,750 TAXABLE LOSS
Plus $ 3,800 Personal exemption, Destry cannot deduct his personal exemption.
Plus $4,950 Adjustment for deductions that are not connected to a trade or business or employment, such as the standard deduction of $5,950 reduced by the non-business income of $1,000 interests from savings.
Plus $ 2,000 Short term capital loss as adjusted by business capital gains and losses (-0-).
($ 7,000) Correct carry back or forward

Question 2

The correct answer is

Lose, because Maco’s actions did not constitute duress.
This answer is correct because for duress to be proved Kent would have to show that Maco’s actions were threats that overcame Kent’s free will forcing Kent into a contract at the $20 rate. Kent needed money and willingly agreed to the $20 rate. Although Maco benefited from the contract rate, it did not force Kent to enter into the $20 rate contract.

Answer 2

The correct answer is

Lose, because Maco’s actions did not constitute duress.
This answer is correct because for duress to be proved Kent would have to show that Maco’s actions were threats that overcame Kent’s free will forcing Kent into a contract at the $20 rate. Kent needed money and willingly agreed to the $20 rate. Although Maco benefited from the contract rate, it did not force Kent to enter into the $20 rate contract.