7510 Business Casualty Losses- One of your client BC LLC bought an apartment complex on 01/01/2004. Total Cost of apartment including land was $8,726,210. Accumulated Depreciation as of 12/31/2017 was 4,513,597 During 2017 Tornedo hit the apartment complex and caused a considerable damage. The US President declared Harris County as a disaster area in 2017. BC spent a considerable amount in cleaning asbestos removal in 2017. Half the units became inhabitable. BC returned the security deposits of the tenants and the tenants moved out. Only half of the units are rented out since July 1, 2017 The insurance company so far has paid $2.5 million in 2017. The insurance company is coming back in 2018 to determine the amount of loss. BC does not know when insurance company will settle the case. Required (1) How and when to report gain or loss from causality ? PLEASE NOTE YOUR RESEARCH SHOULD FOCUS ON HOW TO ANSWERS THESE QUESTIONS, RATHER THAN CALCULATING THE NUMBERS