10. Seghen's car was destroyed by a tornado in a Federally declared disaster area in the current year. At the time of the accident, the car had a fair market value and an adjusted basis of $30,000. Seghen used the car 100% of the time for personal use. Seghen received an insurance recovery of 80% of the value of the car at the time of the accident. If Seghen's AGI for the year is $50,000, the deductible loss on the car would be: a.$10,500. b.$30,000. c.$900. d.$6,000. e.$40,000.
10. Seghen's car was destroyed by a tornado in a Federally declared disaster area in the current year. At the time of the accident, the car had a fair market value and an adjusted basis of $30,000. Seghen used the car 100% of the time for personal use. Seghen received an insurance recovery of 80% of the value of the car at the time of the accident. If Seghen's AGI for the year is $50,000, the deductible loss on the car would be: a.$10,500. b.$30,000. c.$900. d.$6,000. e.$40,000.
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 24CE
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10. Seghen's car was destroyed by a tornado in a Federally declared disaster area in the current year. At the time of the accident, the car had a fair market value and an adjusted basis of $30,000. Seghen used the car 100% of the time for personal use. Seghen received an insurance recovery of 80% of the value of the car at the time of the accident. If Seghen's AGI for the year is $50,000, the deductible loss on the car would be:
a.$10,500.
b.$30,000.
c.$900.
d.$6,000.
e.$40,000.
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