Question

Rhoda owns an electronics store that is burglarized during the current year. The burglars destroy the point-of-sale terminal and steal $330 from the cash drawer. The point-of-sale terminal was purchased for $7,580, and its adjusted basis is $3,670. The insurance adjuster estimates that the fair market value of a similar point-of-sale terminal is $6,010. The burglars also steal stereo equipment costing $4,040 that has a retail value of $7,185. In breaking into the store, the burglars break a large glass door that costs Rhoda $535 to replace. Rhoda's deductible loss if the insurance company reimburses her $4,790 is $_____________

Answer 1

Ans: Rhonda's Deductible Loss if the company reimburses her $4,790 is $3,785

Particulars	Amount($)
Cash	$330
Point of Sale Terminal {Basis}	$3,670
Stereo equipment Basis	$4,040
Broken Glass Door	$535
Total Loss	$8,575
Less:Insurance	{$4,790}
Deductible theft Loss	$3,785