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3. On July 24 of the current year, Sam Smith was involved in an accident with his business use automobile. Sam had purchased the car
3. On July 24 of the current year, Sam Smith was involved in an accident with his business use automobile. Sam had purchased the car for $30,000. The automobile had a fair market value of $20,000 before the accident and $8,000 immediately after the accident. Sam has taken 20,000 of depreciation on the car. a. Calculate Sams business casualty loss deduction. b. Assume Sams automobile was insured at fair market value. What will be the tax result to Sam?
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