Question
Alicia was involved in an automobile accident in 2020. Her car was used 60% for business and 40% for personal use. The car had originally
- Alicia was involved in an automobile accident in 2020. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If her AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss.
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| a. | $34,000; $-0-. |
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| b. | $50,000; $-0-. |
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| c. | $34,000; $4,500. |
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| d. | $26,000; $5,700. |
I would like to know the correct anwser and why. I chosed C, but it was wrong.
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
