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Hargo Corporation's delivery truck was completely destroyed in an accident. At the date of the accident, the adjusted basis was $ 1 8 , 0

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Hargo Corporation's delivery truck was completely destroyed in an accident. At the date of the accident, the adjusted basis was $18,000. The fair value before the accident was $15,000 and the fair value after the accident was zero. The insurance company paid $14,000 for the destroyed truck. As a result of this accident, Hargo should report which of the following?
A. A casualty loss deduction of $1,000
B. A casualty loss deduction of $4,000
C. A casualty loss deduction of $15,000
D. A casualty loss deduction of $18,000
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