Alan owns a ranch in Kansas. During the year, a tornado damaged one of his barns and destroyed some equipment. The following information provides the details of the losses Alan suffered from the tornado.     Adjusted Basis FMV Before FMV After Insurance Proceeds Barn $ 75,000   $ 90,000   $ 40,000   $ 30,000   Bailer $ 25,000   $ 15,000   $ 0   $ 15,000   Truck $ 15,000   $ 18,000   $ 0   $ 10,000     How much loss from the tornado can he deduct on his tax return for the current year?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Alan owns a ranch in Kansas. During the year, a tornado damaged one of his barns and destroyed some equipment. The following information provides the details of the losses Alan suffered from the tornado.
 

  Adjusted Basis FMV Before FMV After Insurance Proceeds
Barn $ 75,000   $ 90,000   $ 40,000   $ 30,000  
Bailer $ 25,000   $ 15,000   $ 0   $ 15,000  
Truck $ 15,000   $ 18,000   $ 0   $ 10,000  
 


How much loss from the tornado can he deduct on his tax return for the current year?

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