John had adjusted gross income of $60,000. During the year, his personal use of summer home was
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John had adjusted gross income of $60,000.
During the year, his personal use of summer home was damaged by a fire.
Pertinent data with respect to the home follow.
| Cost basis | $250,000 |
| Value before the fire | $400,000 |
| Value after the fire | $100,000 |
| Insurance recovery | $270,000 |
John had an accident with his personal-use car. As a result of the accident, John was cited with reckless driving and willful negligence.
Pertinent data with respect to the car follow.
| Cost basis | $80,000 |
| Value before the accident | $6,000 |
| Value after the accident | $20,000 |
| Insurance recovery | $0 |
What is John\'s deductible casualty loss?
a. $0
b. $15,800
c. $15,900
d. $35,900
e. None of the above
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Related Book For 
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
Posted Date:
