Alan Owns a Ranch in Kansas How Much Loss from the Tornado Can He Deduct on One

question 16

Essay

Alan owns a ranch in Kansas.During the year,a tornado damaged one of his barns and destroyed some equipment.The following information provides the details of the losses Alan suffered from the tornado.
$\begin{array}{lccccc} & \text { Adjusted Basis } & \text { FMV Before } & \text { FMV After } & \text {Insurance Proceeds } \\\text { Barn } & \$ 75,000 & \$ 90,000 & \$ 40,000 & \$ 30,000 \\\text { Bailer } & \$ 25,000 & \$ 15,000 & \$ 0 & \$ 15,000 \\\text { Truck } & \$ 15,000 & \$ 18,000 & \$ 0 & \$ 10,000\end{array}$ How much loss from the tornado can he deduct on his tax return for the current year?

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Definitions:

Minimizing Bureaucracy

Involves reducing excessive red tape, rules, and formalities to make an organization more efficient and adaptable.

Horizontal Design

An organizational structure emphasizing collaboration, teamwork, and communication across departments and levels, with few hierarchical barriers.

Functional Design

An approach to design that focuses on practical and efficient aspects, ensuring that every component serves a specific purpose.

Geographic Design

An organizational structure that is arranged based on the geographic locations of its operations or markets.