Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2018. The car's adjusted basis at the time of the accident was $13,000. Its fair market value was $10,000. The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,000 (before considering the loss). What is Norm's deductible loss? $100 SO $500 $9,500 Question 10 (3 points) In January, Lance sold stock with a cost basis of $26,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions? Disallowed loss to James of $2,000; gain to Lance of $1,000. Disallowed loss to Lance of $2,000; gain to James of $3,000. Deductible loss to Lance of $2,000; gain to James of $3,000. Disallowed loss to Lance of $2,000; gain to James of $1,000. None of the above