Jim Had a Car Accident in 2014 in Which His

question 35

Multiple Choice

Jim had a car accident in 2014 in which his car was completely destroyed. At the time of the accident, the car had a fair market value of $30,000 and an adjusted basis of $40,000. Jim used the car 100% of the time for business use. Jim received an insurance recovery of 70% of the value of the car at the time of the accident. If Jim's AGI for the year is $60,000, determine his deductible loss on the car.

• A) $900.
• B) $2,900.
• C) $3,000.
• D) $9,000.
• E) None of the above.

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Definitions:

Evolutionary Tendencies

Behaviors or characteristics that have developed over generations through natural selection.

Cheating

The act of being dishonest or not following the rules to gain an advantage or benefit.

Physically Fit

Describes a state of health and well-being achieved through exercise, nutrition, and sufficient rest, enabling the performance of daily activities with vigor.

Highly Physically Attractive

Referring to individuals who are considered to possess physical traits that align closely with societal or cultural standards of beauty.