In 2011,a flash flood in Death Valley destroyed Desert Dave's Watering Hole and its entire inventory.Net losses after insurance payments came to $34,000.The Watering Hole was able to claim a casualty loss on its tax return and got a tax reduction of $12,000.
Required: Show how these amounts would be reported on the Watering Hole's income statement for the year ended December 31,2011.

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The Answer of In 2011,a flash flood in Death Valley destroyed Desert Dave's Watering Hole and its entire inventory.Net losses after insurance payments came to $34,000.The Watering Hole was able to claim a casualty loss on its tax return and got a tax reduction of $12,000.
Required: Show how these amounts would be reported on the Watering Hole's income statement for the year ended December 31,2011.

In 2011,a Flash Flood in Death Valley Destroyed Desert Dave's