The Ottomans Own a Winter Cabin in Durango, Colorado

question 39

Multiple Choice

The Ottomans own a winter cabin in Durango, Colorado. They purchased the cabin in 1984 for $65,000. During the current year, a blizzard partially destroys the cabin. The fair market value of the cabin after the blizzard is $70,000. The insurance company estimates that the cost of repairing the cabin will be $40,000. The insurance company will reimburse the Ottomans for 70% of the repair cost. What can they deduct as a casualty loss if their adjusted gross income for the year is $80,000?

• A) $ 3,900
• B) $ 4,000
• C) $ 8,000
• D) $11,900
• E) $12,000

---

Definitions:

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience, often manifesting as bias or discrimination.

Communication Differences

Variations in the ways individuals express, receive, and interpret messages, affected by cultural, personal, and situational factors.

Long-Term Orientation

A cultural dimension that values future rewards over immediate gratification, emphasizing perseverance and savings for the future.

Diversity Issues

Challenges and concerns related to the integration and management of individuals of different ethnicities, genders, ages, abilities, and other demographic variables within an organization or society.