Jarrett Owns a Mountain Chalet That He Purchased in 2008

question 84

Multiple Choice

Jarrett owns a mountain chalet that he purchased in 2008 for $175,000.This year,the home appraised at $300,000.Shortly after the appraisal,a blizzard hit the area in spring of the current year,destroying trees and severely damaging several homes,including Jarrett's chalet.Its value was reduced to $135,000.Jarrett does not have insurance.Jarrett's AGI is $200,000.Jarrett's deductible loss after limitations is

• A)$135,000.
• B)$144,900.
• C)$164,900.
• D)$165,000.

---

Definitions:

Available For Sale

A classification for financial assets indicating that they are neither held for trading purposes nor intended to be held to maturity, implying they can be sold to meet liquidity needs or strategic goals.

Idle Funds

Money that is not currently invested or used in transactions, potentially earning no interest or profit.

Semiannually

Occurring or calculated twice a year.

Stock Dividend

A stock dividend is a dividend payment made to shareholders in the form of additional shares rather than a cash payout, affecting the company's share price and equity structure.