Tony is a carpenter who owns his own furniture manufacturing business. During the current year, vandals broke into the workshop, damaged several pieces of equipment, stole his delivery truck, and also stole his personal automobile, which he often kept in the workshop garage. The asset descriptions and related values are as follows:

Although he could not obtain its fair market value after the casualties, Troy decided to repair rather than replace Equipment C.
Before considering any deductions because of these casualties, Troy€™s AGI is $80,000. What deductions may Tony take relating to the vandalism?

Transcribed Image Text:

Asset FMV Before Casulty FMV After Casualty Cost to RepairiReplace Adjusted Basis Insurance Proceeds Equipment A $12,300 Equipment B 8,100 Equipment C | Not Available Delivery Truck 18,000 $4,000 S 8,700 S 9,000 S 3,700 9,000 3,000 7,800 Not Available 13,800 15,300 11,400 32,000 17,500 16,000 Automobile 15,000 12,000 28,000 12,000