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Del restores old automobiles in his spare time. The last four years he has painstakingly restored a 1953 Chevrolet Corvette. He purchased the car for $3,500 and has subsequently spent another $10,000 to overhaul the engine and paint the car. He has personally spent 2,000 hours restoring the car. Del figures that his time is worth at least $10 per hour. Del has just been offered $40,000 for the fully restored Corvette. Before Del had a chance to sell the car it was destroyed in a fire. Unfortunately, there was no insurance on the car. If Del's AGI is $100,000, what is the deductible casualty loss for the car?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9437396

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