Jim was in an auto accident this year. Jim paid $2,450 to repair his personal-use car after the accident and his insurance only
reimbursed him $400. Jim bought his car several years ago for $1,500. What is the amount of casualty loss from this accident before Jim applies any casualty loss floor limitations?$2,450.$2,050.$1,500.$1,100.None of the choices are correct.
The loss is the lesser of the adjusted basis of the asset ($1,500) or the decline in value (here the amount of repairs - $2,450). Before the loss is compared to the per casualty floor limit, the amount of the loss ($1,500) must be reduced by insurance reimbursements ($400).
Suppose the sales increased by 50% in year 2 then it would be normal if the account receivable increased by 35%. However, I need to see the company accounts to understand what is going on. If the turnover is still the same then we can say that clients are paying slower.
Certain records require employee privacy to be protected. Not maintaining and following best practices for employee record keeping leaves you vulnerable to defending yourself against lawsuits, labor investigations or audits.
