Jim Had a Car Accident in 2012 in Which His

question 17

Multiple Choice

Jim had a car accident in 2012 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 personal 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.

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Definitions:

Indigenous Languages

The first languages used by the original inhabitants of a region, which are part of their cultural heritage.

Colonialism

The policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.

Paralanguage

The aspect of spoken communication that is not verbal, including tone, pitch, volume, and speed of speaking, which can affect the message's meaning.

Illiterate People

Individuals who are unable to read or write.