How would the answer to (a) change if, also in Year Three, T lost a vacation cabin in a Federally declared disaster? Assume T paid $200,000 for the cabin but that it was worth $300,000 at the time of the loss. Also assume T received $300,000 in insurance proceeds from the cabin loss.

Answer rating: 100% (QA)

In Year Three if T lost a vacation cabin in a Federally declared disaster and received insurance pro... View the full answer