Don Operates a Taxi Business, and This Year One of His

question 89

Multiple Choice

Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $32,000 and the adjusted basis was $2,000 at the time of the accident. The taxi was repaired at a cost of $2,500 and insurance reimbursed Don $700 of this cost. What is the amount of Don's casualty loss deduction?

• A)$1,300
• B)$2,500
• C)$1,800
• D)$2,000
• E)Don is not eligible for a casualty loss deduction

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Definitions:

Diagnoses and Assessments

The process of identifying a disease or condition based on a patient's symptoms and other information, followed by the evaluation of their needs and the best course of action.

Specifically Defined Criteria

The explicit and detailed standards used to judge or evaluate something.

Analyzed and Synthesized

Analyzed and Synthesized refers to the process of examining information or data critically to break down its components (analyzed) and then combining these components in different ways to form a coherent whole (synthesized).

Miracle Question

A technique used in solution-focused therapy where clients are asked to imagine their life if a miracle happened overnight and their problems were solved, helping to identify goals and desired changes.