Virginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $6,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss?

$4,000

Explanation:

The computation of amount of Virginia's casualty loss is shown below:-

If property is personal property or is not absolutely destroyed, then the amount of loss of casualty is the lower of:

1. The adjusted asset base, or

2. Reducing the fair market value of the property as a result of the incident

But loss of casualty, should be decreased by any salvage value by any insurance or even other reimbursement that you obtain or consider.

Basis = $14,000

Decrease in fair market value = $10,000

Lower of above = $10,000

From insurance company the Reimbursement is = 6000

So, the  Loss of Casualty = $10,000 - $6,000

= $4,000

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.