In 2011,Grant's Personal Residence Was Damaged by Fire

question 58

Multiple Choice

In 2011,Grant's personal residence was damaged by fire.Grant was insured for 90% of his actual loss,and he received the insurance settlement.Grant had adjusted gross income,before considering the casualty item,of $30,000.Pertinent data with respect to the residence follows: What is Grant's allowable casualty loss deduction?

• A) $0.
• B) $6,500.
• C) $6,900.
• D) $10,000.
• E) $80,000.

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Definitions:

MU to P Ratio

An alternative expression for the marginal utility to price ratio, assessing the level of satisfaction obtained per unit of expenditure.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Total Utility

The total satisfaction received by consuming a certain amount of goods or services.