ANSWER NOT 7,000

Problem 8-39 (LO. 6, 7)

Larry is the sole proprietor of a trampoline shop. During 2019, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss?

If an amount is zero, enter "0".

e. Larry's personal yacht was stolen on September 5. The yacht had been purchased in August at a cost of $25,000. The fair market value immediately preceding the theft was $19,600. Larry was insured for 50% of the original cost, and he received $12,500 on December 1.

There is a tax loss (before any AGI limitations) of $ that is treated as nondeductible personal casualty loss .

ANSWER NOT 7,000