During 2015, Pam incurred the following casualty losses:

All of the items were destroyed in the same casualty. Before considering the casualty items, Pam reports business income of $80,000, qualified residential interest of $6,000 property taxes on her personal residence of $2,000, and charitable contributions of $4,000. Compute Pam€™s taxable income for 2015. Pam is single.

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Asset FMV Before FMV After Basis Insurance Business 1S18,000 Business 225,000 Business 3 20,000 Personal 1 12,000 B,000 Personal 3 9,000 $15.000 4 S 4,000 S 0 10,000 8,000 3,000 18,000 19,000 20,000 2,000 Personal 2 5,000 10,000 6,000 8,000