Derrick owns a farm in eastern North Carolina. A hurricane hit the area and destroyed a farm building and some farm equipment and damaged a barn.

Item	Adjusted Basis		FMV before Damage		FMV after Damage		Insurance Proceeds
Building	$	115,200	$	153,300	$	0	$	77,100
Equipment		103,300		80,700		0		24,100
Barn		123,500		184,300		123,500		50,600

Due to the extensive damage throughout the area, the President of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $68,100 of taxable income last year. Their taxable income for the current year is $219,300, excluding the loss from the hurricane.

a-1.

Calculate the amount of the loss deductible by Derrick and his wife?

Loss Amount

a-2.

What amount of loss should be adjusted against current and last year?

	Loss deduction
Last year	$
Current year	$