Question 5 (Chapter 7) Connor's house burns down in a wildfire. The wildfire was a federally-declared disaster. The fire destroyed one personal-use computer and damaged another personal-use computer. The destroyed computer was worth $18,000 at the time of the fire (Connor originally paid $25,000 for it). The damaged computer was worth $3,000 at the time of the fire and $2,000 after the fire (Connor originally paid $6,000 for it). Connor receives $12,000 in insurance proceeds for the destroyed computer and $500 in insurance proceeds for the damaged computer. Connor's AGI is $50,000. P Fair Adjusted Market Asset Basis Value Before Fair Market Value After Insurance Recovery Amount of Casualty Loss (before adjustment) Destroyed Computer Damaged Computer A Total Deductible Casualty Loss