Alma Is in the Business of Dairy Farming

question 49

Multiple Choice

Alma is in the business of dairy farming. During the year, one of her barns was completely destroyed by fire. The adjusted basis of the barn was $90,000. The fair market value of the barn before the fire was $75,000. The barn was insured for 95% of its fair market value, and Alma recovered this amount under the insurance policy. Alma has adjusted gross income for the year of $40,000 (before considering the casualty) . Determine the amount of loss she can deduct on her tax return for the current year.

• A) $3,750
• B) $14,650
• C) $14,750
• D) $18,750
• E) None of the above

---

Definitions:

Humanistic Therapy

A psychotherapeutic approach that emphasizes an individual's inherent drive towards self-actualization and creativity, focusing on the whole person and their unique perspective.

Ethnic Match

The degree of similarity or shared characteristics between an individual's ethnic background and that of others in a specific context.

Treatment Outcomes

The results or consequences of healthcare services, including improvements in health status, behaviors, knowledge, or patient satisfaction following the intervention.

Ethnic-Specific Services

These are services designed to cater to the unique cultural, social, and language needs of specific ethnic groups within a community.