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Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in...

Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2018. The car's adjusted basis at the time of the accident was $13,000. Its fair market value was $10,000. The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,000 (before considering the loss). What is Norm's deductible loss?

a.$9,500

b.$0

c.$100

d.$500

e.None of these choices are correct.

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Expert Solution

ekkarill92 answered 2 years ago
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