In 2013,Larry's Car,which He Purchased Six Years Ago for $6,000,was

question 11

Multiple Choice

In 2013,Larry's car,which he purchased six years ago for $6,000,was demolished in a traffic accident.As a result of the delay caused by this accident,Larry missed a business meeting and lost out on an important sale on which he could have earned a $1,200 commission.When he arrived home,he found his house had been broken into and his personal video equipment currently worth $3,200 (original cost = $5,000) had been stolen,along with his baseball card collection valued at $2,000 (basis = $1,500) .Larry's homeowner's policy covered only $3,000 of this theft loss.He had dropped the collision coverage on his auto insurance policy because that portion was too expensive,so he had no insurance coverage for his auto accident.His adjusted gross income is $82,000 and the fair market value of the car at the time of the accident was $8,000.How much can Larry deduct as an itemized deduction for his casualty and theft losses?

• A)zero
• B)$2,100
• C)$2,700
• D)$3,700
• E)$6,700

---

Definitions:

Sister Chromatid

One of two identical halves of a duplicated chromosome, joined together at a structure called the centromere before they are separated during cell division.

Chromosomes

Structures within cells that contain DNA and genetic information.

Centromere

Of a duplicated eukaryotic chromosome, constricted region where sister chromatids attach to each other.

DNA Replication

The biological process of producing two identical replicas of DNA from one original DNA molecule.