In 2015, Wally had the following insured personal casualty losses (arising from one casualty). Wally also had $42,000 AGI for the year before considering the casualty.
Fair Market Value
| Asset |
Adjusted Basis |
Before |
After |
Insurance Recovery |
| A |
$9,200 |
$8,00 |
$1000 |
$2000 |
| B |
3,000 |
4,000 |
-0- |
4,000 |
| C |
3,700 |
1,700 |
-0- |
900 |
Wally's casualty loss deduction is:
a. $1,500.
b. $1,600.
c. $4,800.
d. $58,000.
e. None of the above.