Jim had a car accident in 2016 in which his car was completely destroyed.At the time of the accident,the car had a fair market value of $30,000 and an adjusted basis of $40,000.Jim used the car 100% of the time for business use.Jim received an insurance recovery of 70% of the value of the car at the time of the accident.If Jim's AGI for the year is $60,000,determine his deductible loss on the car.
A) $900
B) $2,900
C) $3,000
D) $9,000
E) None of the above
Correct Answer:
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