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.

tem	Adjusted Basis		FMV before Damage		FMV after Damage		Insurance Proceeds
Building	$	105,200	$	142,000	$	0	$	68,400
Equipment		83,800		64,000		0		15,400
Barn		128,800		204,100		128,800		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.

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?