Equipment that Kevin used in his business was completely destroyed in a fire.   At the time of the fire, the equipment had a fair market value of $40,000 and an adjusted basis of $36,000.  He received an insurance recovery of $16,000.  If Kevin’s AGI for the year is $100,000, determine his deductible loss on the equipment.   Options: a.) $20,000 b.) $9,900 c.) $24,000 d.) $0 e.) $40,000

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