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Theft losses: On On December 17, 2010, Kellys business office safe is burglarized. The theft is discovered a few days after the burglary. $3,000 cash from the cash registers is stolen. A diamond necklace and a ring that Kelly frequently wore are also stolen. The necklace cost Kelly $2,300 many years ago and is insured for its $6,000 FMV. Kelly purchased the ring for $3,000 just two weeks before the burglary. Unfortunately, the ring and the cash are not insured. Kellys AGI for the year, not including the items noted above, is $70,000. .

    1. What is Kelly’s deductible theft loss in the current year?
    2. What is Kelly’s deductible theft loss in the current year if the theft is not discovered, until January of the following year?

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