Question: During the current year, Horace's personal residence is damaged by a tornado. The residence had an adjusted basis of $80,000 before the tornado. The cost

During the current year, Horace's personal residence is damaged by a tornado. The residence had an adjusted basis of $80,000 before the tornado. The cost of repairing the damage is $30,000. Horace's insurance company reimburses him $22,000 for the repairs. Horace itemizes his deductions and has an adjusted gross income of $57,000 for the year. What is his adjusted basis in the residence after the tornado?

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