Norm's Car, Which He Uses 100% for Personal Purposes, Was

question 16

Multiple Choice

Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2018. The car's adjusted basis at the time of the accident was $13,000. Its fair market value was $10,000. The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,000 (before considering the loss) . What is Norm's deductible loss?

• A) $0
• B) $100
• C) $500
• D) $9,500
• E) None of the above

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Definitions:

Demand and Supply

Fundamental economic concepts where demand is the quantity of a good or service that consumers are willing and able to purchase at various prices, while supply is the quantity that producers are willing and able to sell at various prices.

World Supply

World supply refers to the total quantity of a good or service that is available for purchase on the global market.

OPEC Countries

Nations that are members of the Organization of the Petroleum Exporting Countries, known for their significant role in global oil production and prices.

Technological Advance

The progress in scientific research and development leading to new inventions or improvements in technology that can increase productivity and economic growth.