Question
6. A owns a business and has two cars that are used in it. They are both in an accident. Car 1 has an adjusted
6. A owns a business and has two cars that are used in it. They are both in an accident. Car 1 has an adjusted basis of $10,000, was worth $13,000 before the accident and $2,000 after the accident. Car 2 has an adjusted basis of $25,000 had a fair market value of $20,000 before the accident and has no value after the accident. In both cases A received $2,500 from the insurance company.
How much can A deduct for each loss? Show your work?
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
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