Question 28

Lena owns a restaurant which was damaged by a tornado. The following assets were partially destroyed:

Basis Reduction in FMV Insurance Payment

Building $150,000 $200,000 $100,000

Equipment $30,000 $20,000 $10,000Lena has AGI of $50,000. What is the amount of Lena's deductible casualty loss?

$70,000

$54,900

$60,000

$180,000