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 $ 99,500 $ 142,000 $ 0 $ 57,000 Equipment 84,100 60,000 0 18,400 Barn 110,700 170,400 110,700 45,600 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 $50,400 of taxable income last year. Their taxable income for the current year is $166,200, 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?