John Had Adjusted Gross Income of $60,000

question 43

Multiple Choice

John had adjusted gross income of $60,000.During the year his personal use summer home was damaged by a fire.Pertinent data with respect to the home follows:
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John had an accident with his personal use car.As a result of the accident,John was cited with reckless driving and willful negligence.Pertinent data with respect to the car follows:
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What is John's itemized casualty loss deduction?

• A)$0
• B)$2,000
• C)$17,000
• D)$18,000
• E)None of the above

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Definitions:

Merchandise Value

The total worth of goods held for resale by a retail or wholesale business, typically assessed at cost or market price.

Inventory Valuation

The method used to assign value to a company's inventory, including raw materials, work-in-progress, and finished goods, affecting cost of goods sold and net income.

Year-End Inventory

The total value of all inventory that a company has in stock at the end of its fiscal year.

Consignment

A business arrangement where goods are left with a third party to sell, but the ownership remains with the supplier until the goods are sold.