7 5 points Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area was declared) and destroyed a farm building and some farm equipment and damaged a barn. FMV before Damage Item Building Equipment Barn Adjusted Basis $ 97,100 82,300 118,500 $ 129,700 55,800 169,500 FMV after Damage Insurance Proceeds $ 0 0 118,500 $ 64,500 24,400 34,800 eBook References Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $51,300 of taxable income last year. Their taxable income for the current year is $168,900, excluding the loss from the hurricane. Required: a-1. Calculate the amount of the loss deductible by Derrick and his wife. a-2. What amount of loss should be adjusted against current and last year? a-1. Loss amount a-2. Last year a-2. Current year