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 $ $108,900$ $ $148,200$ $ $0$ $ $69,600$

Equipment $76,50057,000015,500$

Barn $103,500165,100103,50043,500$

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 $$69,600$ of taxable income last year. Their taxable income for the current year is $$223,800,$ 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?