Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $17,500, and the adjusted basis was $1,350 at the time of the accident. The taxi was repaired at a cost of $2,825 and insurance reimbursed Don $739 of this cost. What is the amount of Don's casualty loss deduction?     Multiple Choice   $611   $2,825   $2,086   $1,350   Don is not eligible for a casualty loss deduction

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $17,500, and the adjusted basis was $1,350 at the time of the accident. The taxi was repaired at a cost of $2,825 and insurance reimbursed Don $739 of this cost. What is the amount of Don's casualty loss deduction?

 

 

Multiple Choice
  •  

    $611

  •  

    $2,825

  •  

    $2,086

  •  

    $1,350

  •  

    Don is not eligible for a casualty loss deduction

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