Chapter 8, Problem 19P

To determine

Introduction:A business casualty loss is a loss that occurred due to the destruction of property or due to an accident. The amount of casualty loss is adjusted in the case by deducting the insurance reimbursement from an insurance basis. If the property is partially destroyed, the loss is either the insurance proceeds less adjusted basis at the time of the casualty or fair market value whichever is less.

The amount of gain or loss as a result of casualty.