Roger Thornhill owned a boat that he used for personal purposes. He purchased the boat in Year One for $100,000.

(a)  In Year Three, the boat was stolen. At the time of the theft, the boat was worth $60,000. Roger’s adjusted gross income for Year Three was $100,000. The boat was uninsured. If Roger decided to purchase a new boat, it would cost him $200,000. Compute the amount of Roger’s deduction from the loss of the boat.

(b)  How would the answer to (a) change if the boat was insured, and Roger collected $40,000 in insurance proceeds?

(c)  How would the answer to (a) change if, also in Year Three, Roger lost his vacation cabin in a Federally declared disaster? Assume Roger paid $200,000 for the cabin but that it was worth $300,000 at the time of the loss. Also assume that Roger received $300,000 in insurance proceeds from the cabin loss.

(d)  How would the answer to (c) change if the amount of insurance proceeds that Roger received for the cabin totaled $240,000?

(e)  How would the answer to (a) change if the boat capsized and was completely destroyed? Assume the boat developed a small leak late in Year Two but Roger never discovered it because he never checked on the boat during the winter months. The boat finally capsized from the leak in March of Year Three.