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Otto operates a bakery and is on the cash method and calendar year. This year one of Otto's ovens caught fire and was partially destroyed.
Otto operates a bakery and is on the cash method and calendar year. This year one of Otto's ovens caught fire and was partially destroyed. Otto bought it a few years ago for $28,000 and claimed depreciation of $13,600 up to the fire. Otto was charged $3,600 for repairs to the oven but the insurance company paid Otto $1,900 for the damage. What is Otto's casualty loss deduction
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