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Question - Johnny had a car accident in 2020 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. Johnny used the car 100% of the time for business use. He received an insurance recovery of 70% of the value of the car at the time of the accident. If Johnny's AGI for the year is $60,000, determine his deductible loss on the car.
a. $19,000
b. $3,000
c. $2,900
d. $9,000
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