ACCT 324 help A Guide to career/Snaptutorial ACCT 324 help A Guide to career/Snaptutorial | Page 9

Fair Market
Value (After)
Insurance
Recovery
A
$500
$700
$300
$150
B
3,000
2,000
-0-
500
C
700
900
-0-
200
Rick's casualty loss deduction is:
16. (TCO 3) John had adjusted gross income of $60,000. During the
year, his personal use summer home was damaged by a fire. Pertinent
data with respect to the home follows:
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 follows:
Cost basis