John's car was completely destroyed by fire in 2010. Its cost and fair market value were $8,000.
Question # 00470493
Posted By:
Updated on: 01/26/2017 08:45 PM Due on: 01/28/2017
1. (TCO 3) John's car was completely destroyed by fire in 2010. Its cost and fair market value were $8,000. John's claim against insurance was $3,000 and was NOT made until 2011. The following year, 2011, John settled with the insurance company for $2,000. What are John's deductions for 2010 and 2011 based on the above information if 1) the car was used for personal property and 2) business property? (Points: 25)
-
Rating:
/5
Solution: John's car was completely destroyed by fire in 2010. Its cost and fair market value were $8,000.