Alicia Was Involved in an Automobile Accident in 2012

question 16

Multiple Choice

Alicia was involved in an automobile accident in 2012.Her car was used 60% for business and 40% for personal use.The car had originally cost $40,000.At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation.The car was totally destroyed and Alicia had let her car insurance expire.If Alicia's AGI is $50,000 (before considering the loss) , determine her itemized deduction for the casualty loss.

• A)$4,500.
• B)$6,100.
• C)$8,000.
• D)$24,000.
• E)None of the above.