Determine the deductible loss on the car

Assignment Help Accounting Basics

Reference no: EM132670959

Problem 1: 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

Reference no: EM132670959

Questions Cloud

What can leaders do to avert this potential outcome : Do efforts towards a more diverse work culture stifle employees from speaking out? What can leaders do to avert this potential outcome?

Network infrastructure : The network management section should discuss how the systems and applications will be managed, as well as how various utilities can help in management process

Terminate an employees contract for comments : Should employers have the right to terminate an employees contract for comments they post on social media that go against the views of the company?

How much income should be recognized by the employee : A department store sold a stereo to an employee for $265, How much income should be recognized by the employee from these transactions?

Determine the deductible loss on the car : 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.

What were the reasons for organizational change : What were the reasons for organizational change within Hanna Andersson, both internally and externally?

Suggest about the role of silence in negotiations : 1. What does this case suggest about the role of silence in negotiations?

Recommendations for improvement of international businesses : Provide two recommendations for improvement of their international businesses.

What is the minimum number of cash registers the bookstore : What is the minimum number of cash registers the bookstore should have during busy demand? How many are needed during peak demand?

User Account

All Pages