In February 2019,the Storage Building Used in Amelia's Business Is

question 98

Multiple Choice

In February 2019,the storage building used in Amelia's business is damaged by a windstorm.It had an adjusted basis of $150,000 at that time.Due to changing insurance companies,the building had been appraised recently,with a resulting FMV of $200,000.After the storm,the building appraised at $120,000.Amelia has received no insurance reimbursement by December 31,but expects to recover 90 percent of the loss.In the subsequent year,the insurance company pays Amelia $50,000.Amelia's AGI is $85,000 in 2019,and her 2020 AGI is $80,000.Amelia suffers no other casualty losses in either year.Amelia may deduct

• A)$0 loss in 2019 and $30,000 loss in 2020.
• B)$8,000 loss in 2019 and $22,000 loss in 2020.
• C)$30,000 loss in 2019 and $0 in 2020.
• D)$80,000 loss in 2019 and $50,000 gain in 2020.

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Definitions:

DOT Number

A unique identifier assigned by the Department of Transportation to certify compliance with safety standards.

Production Date

The date on which a product was manufactured or assembled.

Week Number

A numerical representation of the sequential order of weeks in a calendar year, used for planning and scheduling.

Treadwear Number

A numerical rating that indicates the relative durability of a tire's tread, reflecting its expected longevity.