The Mann Company does not carry insurance on its office machines. On December 27, 20x2, machine A was totally destroyed by fire. The book value of machine A, depreciated to the date of the fire, was $62,000. Disposal costs were $3,000. On December 30, 20x2, machine B which can only be operated with machine A's support, depreciated to the date of explosion, was $74,000. Disposal costs were $4,000. What is the total amount of losses that should be charged to income in 20x2? a. $ 62,000 b. $ 65,000 c. $136,000 d. $143,000

The Mann Company does not carry insurance on its office machines. On December 27, 20x2, machine A was totally destroyed by fire. The book value of machine A, depreciated to the date of the fire, was $62,000. Disposal costs were $3,000. On December 30, 20x2, machine B which can only be operated with machine A's support, depreciated to the date of explosion, was $74,000. Disposal costs were $4,000. What is the total amount of losses that should be charged to income in 20x2? a. $ 62,000 b. $ 65,000 c. $136,000 d. $143,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 29P

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