Mario's Delivery Van Is Completely Destroyed When a Tree Fell

question 71

Multiple Choice

Mario's delivery van is completely destroyed when a tree fell on it. Mario's insurance company pays him $11,000 for the accident. The van cost $20,000 three years ago. Tax depreciation deductions of $6,000 have been taken to date. The "Blue Book value" (i.e., fair market value) of the van is $12,000 on the accident date. What is Mario's casualty loss on the van?

• A)$- 0 -
• B)$ 1,000
• C)$ 3,000
• D)$ 8,000
• E)$13,000

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Definitions:

Utility Function

A mathematical representation of how consumer preferences over goods or services translate into utility or satisfaction levels.

Whisky Consumption

The act of drinking whisky, which can be measured by volume consumed over a given period.

Gallons

A measure of volume in the US customary units and the British imperial system, used primarily for fuel and liquid goods.

Whisky Consumption

The action or practice of drinking whisky, which can be analyzed for its economic impacts, trends, and consumer preferences.