In 2020, Julie's business-use equipment was completely destroyed in a casualty. The equipment had a fair...
In 2020, Julie's business-use equipment was completely destroyed in a casualty. The equipment had a fair market value of $100,000 and an adjusted basis of $50,000 at the time of the casualty. Jamie's received insurance proceeds of $100,000. What is the amount of Jamie's casualty loss deduction or her casualty gain in 2020?
Homework Answers
In books of julie the book value/adjusted basis is 50,000
Fair value of 1,00,000 is immaterial (assumption Book Value Method is followed by julie in business)
Insurance proceeds received 1,00,000
Therefore casualty gain is 1,00,000-50,000 = $50,000
If julie follow revaluation method then she revalue asset at 1,00,00 in this case there is a revaluation gain of 50,000 but casualty gain is zero..
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In 2020, Julie's business-use equipment was completely destroyed
in a casualty. The equipment had a fair...
In 2020, Jamie's business-use equipment was completely destroyed in a casualty. The equipment had a fair...
In 2020, Jamie's business-use equipment was completely destroyed in a casualty. The equipment had a fair market value of $100,000 and an adjusted basis of $50,000 at the time of the casualty. Jamie's received insurance proceeds of $40,000. What is the amount of Jamie's casualty loss deduction or her casualty gain in 2020?
In 2020, Jamie's business-use equipment was completely destroyed in a casualty. The equipment had a fair...
In 2020, Jamie's business-use equipment was completely destroyed in a casualty. The equipment had a fair market value of $100,000 and an adjusted basis of $50,000 at the time of the casualty. Jamie's received insurance proceeds of $40,000. What is the amount of Jamie's casualty loss deduction or her casualty gain in 2020? Enter losses as a negative number and gains as a positive number.
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In 2020, Jessie's business-use equipment was damaged in a casualty. The equipment had a fair market...
In 2020, Jessie's business-use equipment was damaged in a casualty. The equipment had a fair market value of $100,000 and an adjusted basis of $70,000 before the casualty. After the casualty, the equipment was worth $60,000 Jessie's received no insurance proceeds. What is the amount of Jessie's casualty loss deduction or her casualty gain in 2020? Enter losses as a negative number and gains as a positive number.
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