Determine deductible loss on the car

Assignment Help Accounting Basics
Reference no: EM13142463

Jim had a car accident in 2009 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. Jim used the car 100% of the time for personal use. Jim received an insurance recovery of 80% of the value of the car at the time of the accident. If Jim's AGI for the year is $50,000, determine his deductible loss on the car.

A) $500.

B) $6,000.

C) $10,500.

D) $30,000.

E) None of the above.

Reference no: EM13142463

Questions Cloud

Factor in producing earnings forecasts : Which of the following is not a factor in producing earnings forecasts?
Determine whether the redemption can qualify for sale : White redeems all of Belinda’s shares. Determine whether the redemption can qualify for sale or exchange treatment under the complete termination redemption rules in each of the following independent circumstances:
Response scenario paper : Response Scenario Paper - Applying the principles of an incident command system, write a 1200 to1500 word paper that formulates and describes in detail a response scenario for a toxic chemical spill in a manufacturing environment.
What are the tax consequences of the stock redemption : What are the tax consequences of the stock redemption to Jacob? What are the tax consequences of the stock redemption to Tan Corporation?
Determine deductible loss on the car : Jim received an insurance recovery of 80% of the value of the car at the time of the accident. If Jim's AGI for the year is $50,000, determine his deductible loss on the car.
What is the limiting reagent : when 7.50 g of magnesium reacts with 9.50 g hydrochloric acid, hydrogen gas is formed. what is the limiting reagent?
Investment interest expense limitation : Identify the structural similarity between the investment interest expense limitation, the capital loss limitation, and the passive activity loss limitation.
What are two changes that occur in the human body : What are two changes that occur in the human body during natural aging? What causes this?
Prepare a five year table to amortize the premium : The market rate of interest on this date is 8%, and Stacy Company receives proceeds of $10,803 on the bond issuance. Prepare a five year table to amortize the premium using the effective interest method.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Journal entries for recording pension expense

Prepare the journal entries to record the pension expense and funding for the year.

  Product sold at the split-off point

Which product or products should be sold at the split-off point and which product or products should be processed further? Show computations.

  First fiscal period of the combination

which one of the following accounts would not appear on the consolidated financial statements at the end of the first fiscal period of the combination?

  What amount of drawings was made

Net income is $29,000. Beginning capital balance was $34,000. Ending capital balance was $55,000. No capital contributions were made by the owner during the year. What amount of drawings was made?

  Define advantages and disadvantages to fsc decision

What are the advantages and disadvantages to FSC's decision to not use the BSC as a performance tool- i.e., linking it to the employee evaluation and reward system?

  Determine the administrative costs calculated to each

Scudder company has two operating departments: mixing and forming. Mixing has 240 employees and occupies 22,000 ft². Forming has 80 employees and occupies 18,000 ft².

  Problem related to real estate partnership

In addition, Dan reported $5,000 in long-term capital gains from the sale of a stock and $3,000 of income from another real estate partnership. What is Dan's tax basis in XYZ, LP?

  Prepare a statement of cash flows using the indirect method

Prepare a statement of cash flows using the indirect method.

  Should junior company buy part externally make it internally

Junior Company currently buys 30,000 units of a part used to manufacture its product at $40 per unit. Recently the supplier informed Junior Company that a 20 percent increase will take effect next year.

  What are the effects on net income from these transactions

On April 1, Quality Corporation, a U.S. company, expects to sell merchandise to a French customer in three months, denominating the transaction in euros. On April 1, the spot rate is $1.41 per euro.

  Proportionate consolidation concept

Under the proportionate consolidation concept, which of the following statements is true?

  Compute the incremental costs of upgrading the material

Beck Company is concerned about quality and is considering upgrading the materials used in its product to a higher quality. Doing so would cost an additional $1.65 per unit.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd