Assume the same facts as in problem 47. What is FFF’s allowable casualty loss deduction under each of the following situations?
a. A comparable van sells for $4,000. After the accident, the insurance adjuster estimates the van was worth $1,500. The insurance company pays FFF $1,200 on the casualty.
b. A comparable van sells for $8,400. After the accident, the insurance adjuster estimates the value of the van at $1,500. The insurance company pays FFF $1,200 on the casualty.