Lena Owns a Restaurant Which Was Damaged by a Tornado

question 75

Multiple Choice

Lena owns a restaurant which was damaged by a tornado.The following assets were partially destroyed: $$\begin{array} { | l | r | r | r | } \hline & { \text { Basis } } & \text { Reduction in FMV } & \text { Insurance Payment } \\\hline \text { Building } & \$ 150,000 & \$ 200,000 & \$ 100,000 \\\hline \text { Equipment } & \$ 30,000 & \$ 20,000 & \$ 10,000 \\\hline\end{array}$$ Lena has AGI of $50,000.What is the amount of Lena's deductible casualty loss?

• A)$54,900
• B)$60,000
• C)$70,000
• D)$180,000

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Definitions:

Shell-brand Gasoline

A type of fuel sold under the Shell brand name, which is a global group of energy and petrochemical companies.

Heating Oil

A low viscosity, liquid petroleum product used as a fuel oil for furnaces or boilers in buildings.

Consumer

An individual or group who purchases goods and services for personal use.

Seller

An individual or entity that offers a product or service for sale in the marketplace.