Jarrett Owns a Mountain Chalet That He Purchased in 2008

question 110

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 severe blizzard hit the area in spring of the current year,destroying trees and severely damaging several homes,including Jarrett's chalet.The blizzard was declared a federal disaster.The chalet's 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.

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Definitions:

Domestic Producers

Domestic producers are businesses or individuals that create or manufacture goods and services within a country's borders.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a raw material for fuel and in the petrochemical industry.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive.

Tariff

A tax imposed by a government on imported or exported goods.