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tino4ka555 [31]
3 years ago
11

Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchase

d for $32,000 and the adjusted basis was $2,000 at the time of the accident. The taxi was repaired at a cost of $2,500 and insurance reimbursed Don $700 of this cost. What is the amount of Don's casualty loss deduction?
a) $1,300.
b) $2,500.
c) $1,800.
d) $2,000.
e) Don is not eligible for a casualty loss deduction.
Mathematics
1 answer:
scoray [572]3 years ago
3 0
I believe the answer is c
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