Daniel's Cabin Was Destroyed in a Massive Tornado in 2018

question 2021

Multiple Choice

Daniel's cabin was destroyed in a massive tornado in 2018. After consideration of insurance, he has a loss of $15,000. Due to the tornado, the area has been declared a federal disaster area. Daniel can deduct this loss in

• A) 2017.
• B) 2018.
• C) 2019.
• D) either 2017 or 2018.

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Definitions:

Objectively

In a manner that is not influenced by personal feelings or biases, based on factual and unbiased considerations.

Labor

The human effort, both physical and mental, used in the production of goods and services.

Positive Economics

Positive Economics is the branch of economics that deals with the description and explanation of economic phenomena, focusing on factual and cause-and-effect relationships.

Economic Variables

Quantitative measures that represent aspects of the economy or a company and can change over time, such as GDP, inflation rate, and unemployment rate.