PLEASE ANSWER ASAP

Problem 7-34 (LO. 3, 4) Heather owns a two-story building. The building is used 40% for business use and 60% for personal use. During 2020, a fire caused major damage to the building and its contents Heather purchased the building for $800,000 and has taken depreciation of $100,000 on the business portion. At the time of the fire, the building had a fair market value of $900,000. Immediately after the fire, the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed. If an amount is zero, enter "O". a. Determine the business and personal gain or loss in regard to the building and its contents. . Business Portion Personal Portion Total $800,000 $ 320,000 $ 480,000 Cost of building Less: Depreciation (100,000) 100,000 Adjusted basis $700,000 $ 220,000 $ 480,000 Decline in FMV $700,000 $ 280,000 $ 420,000 Business Portion Personal Portion $ 220,000 $ 420,000 Loss on building (lesser of basis or decline in FMV) Less: Insurance reimbursement 240,000 360,000 Loss on business portion $ 20,000 Loss on personal portion $ 60,000 or decline in FMV) Less: Insurance reimbursement 240,000 360,000 Loss on business portion $ 20,000 Loss on personal portion 60,000 Loss on business contents 220,000 Less: Insurance recovery 175,000 Loss on business contents $ 45,000 Loss on personal contents $ 50,000 Less: Insurance recovery 65,000 Gain on personal contents 15,000 b. Heather's AGI is $100,000 before considering the effects of the fire. Determine her itemized deduction and AGI after considering the effects of the fire. Adjusted Gross Income AGI before the effects of the fire $100,000 Business gain - building $ 20,000 Business loss - contents 45,000 Net business casualty loss 25,000 Personal casualty gain 15,000 Personal casualty loss to extent of gain 15,000) Net personal casualty gain 0 AGI $ 120,000 Itemized Deduction Balance of personal casualty loss $ 60,000