Question
A tornado damaged Louise's home on August 17, this year. To restore the destroyed property she paid the following amounts: $80,000 to repair the damage
A tornado damaged Louise's home on August 17, this year. To restore the destroyed property she paid the following amounts:
$80,000 to repair the damage to the house. The house originally cost $70,000 and was worth approximately $90,000 at the time of the tornado.
Louise filed a claim with her insurance company and received $65,000. She has AGI of $30,000.
If the tornado also caused $2,000 damage to Louise's furniture and all other facts remained the same, the amount of Louise's deductible casualty loss would be:
a. | a. $5,000. | |
b. | b. $3,900. | |
c. | c. $7,000. | |
d. | d. $92,000. | |
e. | e. None of the above. |
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