Amys business incurred a casualty loss in 2013. Immediately before the casualty, her business truck had an adjusted basis of $35,000 and a fair market value of $40,000. Immediately after the casualty, the truck had a fair market value of $20,000. Because of the truck damage, Amys insurance company provided $10,000 as a reimbursement in 2013. What was Amys 2013 casualty loss deduction? a. $0 b. $10,000 c. $20,000 d. Unknown (because we must know Amy's AGI) In 2006, Satsuki (a single taxpayer) loaned $20,000 to his friend Freda. In 2013, Freda declared bankruptcy, with the result that the debt became totally worthless. How should Satsuki treat the loss relating to this debt (assume that the debt is a nonbusiness debt that is a bona fide debt that arose from a debtor-creditor relationship)? a. As an itemized deduction b. As a long-term capital loss c. As a short-term capital loss d. Satsuki may not take any deduction relating to the debt (it is a nonbusiness debt)