Nicole has a weekend home on Pecan Island that she purchased in 2013 for $250,000.Recently,the home was appraised at $260,000.After the appraisal,a hurricane hit Pecan Island,severely damaging Nicole's home.The hurricane was declared a federal disaster.An appraisal placed the value of the home at $140,000 after the hurricane.Because of its prohibitive cost,Nicole had no hurricane insurance.Before any reductions or limitations,Nicole's casualty loss amount is

Question

Quizplus · Accepted Answer

The casualty loss amount is the difference between the value of the property before and after the casualty, minus any insurance or other reimbursement received. In this case, the value of the property before the hurricane was $260,000 and after the hurricane was $140,000, resulting in a loss of $120,000. Since Nicole did not have hurricane insurance, there is no insurance or other reimbursement to be subtracted from the loss amount. Therefore, the answer is C.

Nicole Has a Weekend Home on Pecan Island That She