Jim Had a Car Accident in 2016 in Which His

question 74

Multiple Choice

Jim had a car accident in 2016 in which his car was completely destroyed.At the time of the accident,the car had a fair market value of $30,000 and an adjusted basis of $40,000.Jim used the car 100% of the time for business use.Jim received an insurance recovery of 70% of the value of the car at the time of the accident.If Jim's AGI for the year is $60,000,determine his deductible loss on the car.

• A)$900
• B)$2,900
• C)$3,000
• D)$9,000
• E)None of the above

---

Definitions:

THC

Tetrahydrocannabinol, the main psychoactive compound in cannabis that produces the high sensation, with effects on various neurological processes.

Endorphins

Neurochemicals produced in the brain that act as natural painkillers and also boost feelings of pleasure or well-being.

Interleukins

Interleukins are a group of cytokines (secreted proteins and signaling molecules) that are produced by white blood cells and play a pivotal role in the body's immune response.

Alcoholism

A chronic condition involving an uncontrollable desire to drink alcohol despite the negative impact it has on one's health, social life, and responsibilities.