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Rhoda owns an electronics store that is burglarized during the current year. The burglars destroy the...

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 $_____________

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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

ekkarill92 answered 3 years ago
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