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This year Amy purchased $3,000 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting
This year Amy purchased $3,000 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation expense for the equipment. After the accident, Amy sold the equipment to a junk shop for $500. What amount can Amy deduct for the loss of the equipment?
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