This Summer, Rick's Home (Which Has a Basis of $80,000)

question 1125

Multiple Choice

This summer, Rick's home (which has a basis of $80,000) is damaged by a tornado which was declared a federal disaster. An appraisal by a realtor placed the FMV of the home at $120,000 before the tornado and at $85,000 after the tornado. Rick estimates that the insurance company will reimburse him for 60% of the loss. Next year, the insurance company pays Rick $20,000. Rick's current year's AGI is $50,000 and his next year's AGI is $55,000. Rick suffers no other casualty losses in either year. After limitations, Rick may deduct a casualty loss this year of

• A) $8,900.
• B) $15,000.
• C) $9,900.
• D) $35,000.

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Definitions:

Progesterone

A hormone released by the ovaries involved in the menstrual cycle, pregnancy, and embryogenesis.

Mature Follicle

Ovarian follicle in which the oocyte attains its full size. The follicle contains a fluid-filled antrum and is surrounded by the theca interna and externa; also called Graafian follicle.

Meiotic Division

A type of cell division that reduces the chromosome number by half, resulting in the production of four genetically diverse haploid cells, critical for sexual reproduction.

Mature Follicle

A fully developed ovarian follicle that is ready to release an egg during ovulation in the female reproductive cycle.