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In: Accounting

casualty loss, garage was destroyed by fire. Cost and fair market value were. $9000 Insurance pay...

casualty loss, garage was destroyed by fire. Cost and fair market value were. $9000

Insurance pay out for the garage fire is $3,000

Assuming the fire is attributed to a federally declared disaster, what amount will be recorded on the form 4684 and schedule A.

Solutions

Expert Solution

Answer: (Amount in Dollars)

Cost and Fair Market Value = 9,000

-(Less )Insurance Pay out = 3,000

Amount to be recorded on Form 4684 and schedule A = 6,000

Notes:

  • You must deduct Insurance payout amount from your total loss amount for calculating amount to be recorded on form 4684 and schedule A

ekkarill92 answered 2 years ago
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