Ford's Automobile That He Uses 100% for Business Is Vandalized

question 62

Multiple Choice

Ford's automobile that he uses 100% for business is vandalized. The adjusted basis before the vandalism is $3,000. The fair market value of the car before the vandalism is $7,000, and the fair market value of the property after the vandalism is $2,000. Ford's insurance does not cover vandalism. What is Ford's loss deduction for the year?

• A)$- 0 -
• B)$1,000
• C)$2,000
• D)$3,000
• E)$5,000

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Definitions:

Perspective-Taking

The ability to understand and consider the world from someone else's viewpoint, an important social-cognitive skill in developing empathy.

Independence

The state or quality of being self-reliant and autonomous, free from external control or support.

Geographic Proximity

The physical closeness between two or more locations, often affecting social relations, economic transactions, or environmental impacts.

Personality

An individual’s distinctive ways of responding to people and events.