A sculpture that Korliss Kane held for investment was destroyed in a flood. The sculpture was insured, and Korliss had a $60,000 gain from sculpture and the vase had been held more than one year when the flood occurred (i.e., both are long-term nonpersonal use capital assets). a. Compute Korliss's net gain or loss, and identify how it would be treated. Korliss has Feedback V Check My Work When 1231 assets are disposed of by casualty or theft, a special netting rule is applied. b. Complete a letter to Korliss explaining the nature of the gain or loss. SWFT, LLP 5191 Natorp Boulevard Mason, OH45040 November 23,2022 Mr. Korliss Kane 2367 Meridian Road Hannibal, MO 63401 Dear Mr. Kane: were assets you were holding for investment. The sculpture casualty resulted in a $60,000 gain because it was insured. The vase casualty resulted in a $17,000 loss because it was not insured. This results in years, the $ is treated as no more than % If you have any questions concerning these transactions or other tax matters, please feel free to contact me. Sincerely, Sheila Dailey, CPA Partner A sculpture that Korliss Kane held for investment was destroyed in a flood. The sculpture was insured, and Korliss had a $60,000 gain from sculpture and the vase had been held more than one year when the flood occurred (i.e., both are long-term nonpersonal use capital assets). a. Compute Korliss's net gain or loss, and identify how it would be treated. Korliss has Feedback V Check My Work When 1231 assets are disposed of by casualty or theft, a special netting rule is applied. b. Complete a letter to Korliss explaining the nature of the gain or loss. SWFT, LLP 5191 Natorp Boulevard Mason, OH45040 November 23,2022 Mr. Korliss Kane 2367 Meridian Road Hannibal, MO 63401 Dear Mr. Kane: were assets you were holding for investment. The sculpture casualty resulted in a $60,000 gain because it was insured. The vase casualty resulted in a $17,000 loss because it was not insured. This results in years, the $ is treated as no more than % If you have any questions concerning these transactions or other tax matters, please feel free to contact me. Sincerely, Sheila Dailey, CPA Partner