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 Building Equipment Barn Adjusted Basis $ 106,500 79,600 104,600 FMV before Damage $ 136,800 57,500 163,400 FMV after Damage $ 0 0 104,600 Insurance Proceeds $ 76,200 19,600 42,500 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 $61,500 of taxable income last year. Their taxable income for the current year is $199,500, 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