Derrick owns a farm in eastern North Carolina. A hurricane hit the area (a national disaster area was declared) 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 Equipment Barn $ 105,200 83,800 128,800 $0 $ 68,400 15,400 128,800 $142,000 64,000 204,100 54,400 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 $65,100 of taxable income last year. Their taxable income for the current year is $210,300, excluding the loss from the hurricane. Required: a-1. Calculate the amount of the loss deductible by Derrick and his wife. a-2. What amount of loss should be adjusted against current and last year? a-1 Loss amount a-2. Last year a-2 Current year