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

Nicole's casualty loss is calculated as the difference between the home's value before and after the hurricane, which is $260,000 - $140,000 = $120,000.

Nicole Has a Weekend Home on Pecan Island That She