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Problem:

John's car was completely destroyed by a fire in 2010. Its cost and fair market value were $8,000. John's claim against insurance was $3,000 and wasn't made until 2011. The following year, 2011, John settled with the insurance company for $2,000.

Required:

Question: What are John's deductions for 2010 and 2011 based on the above information if (1) the car was used for personal property and (2) business property?

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164955

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