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:

Psychoanalytic Approach

A psychological theory or therapeutic method that attributes thoughts and actions to unconscious motives and conflicts.

Deviant Behavior

Deviant behavior involves actions that deviate from the accepted norms, values, or standards of a society or community.

Goal-Means Gap

The disparity between culturally approved goals and the availability of legitimate means to achieve these goals, often cited in strain theory as a cause of deviance.

Ritualism

The adherence to or performance of rituals or ceremonial acts as part of a culture, religion, or group membership.