During the Current Year, an Office Desk Used by Pat

question 52

Essay

During the current year, an office desk used by Pat in his business was completely destroyed by a fire. The adjusted basis of the desk was $900 (original cost of $1,500 less accumulated depreciation of $600). Pat received $500 from his insurance company, but he did not replace the desk.
a.What is the amount of Pat's recognized gain or loss (deduction) as a result of the casualty?
b.Assuming this is Pat's only casualty gain or loss for the year, what is the nature of the gain or loss?

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Definitions:

Express

Refers to the act of conveying thoughts, feelings, or information clearly and effectively.

Therapeutic Relationship

The professional and supportive alliance between a therapist and a client, crucial for effective therapy.

Unconditional Acceptance

An approach of total acceptance without judgment of an individual's characteristics or actions, often used in therapeutic settings.

Empathic

Pertaining to the psychological ability to understand and feel what another person is experiencing, essentially putting oneself in another's shoes.