In 2018, Grant's Personal Residence Was Completely Destroyed by Fire

question 32

Multiple Choice

In 2018, Grant's personal residence was completely destroyed by fire.Grant was insured for 100% of his actual loss, and he received the insurance settlement.Grant had adjusted gross income, before considering the casualty item, of $30,000.Pertinent data with respect to the residence follows: What is Grant's allowable casualty loss deduction?

• A)$0
• B)$6,500
• C)$6,900
• D)$10,000
• E)$80,000

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Definitions:

Job Evaluation

Job evaluation is a systematic process used to determine the relative worth of jobs within an organization for the purpose of establishing fair compensation levels.

Relative Worth

The perceived value or importance of a job, task, or employee's contributions in comparison to others within an organization, often used in determining compensation.

Wage Compression

Occurs when there is a narrowing of the differences in pay between employees regardless of their skill level or experience, often due to internal or external pressure on wage structures.

Rate Ranges

Pay scale brackets defined by an employer that dictate the minimum and maximum salary for a particular position.