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The Kaplans,who Live in Boise,Idaho,had Adjusted Gross Income of $140,000

Question 91

Multiple Choice

The Kaplans,who live in Boise,Idaho,had adjusted gross income of $140,000 in 2017.During the year,their principal residence was severely damaged by a house fire.The pertinent financial information is as follows:  Cost basis =$134,000 Value before casualty =$156,000 Value after casualty =$20,000\begin{array}{lr}\text { Cost basis }= & \$ 134,000 \\\text { Value before casualty }= & \$ 156,000 \\\text { Value after casualty }= & \$ 20,000\end{array} The Kaplans had some insurance and in 2017 reached a settlement with the insurance company for $110,000 insurance settlement.What is their allowable casualty loss deduction for 2017?


A) $9,900.
B) $23,900.
C) $36,000.
D) None of these.

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