Barbara is in the business of dairy farming. During the year, one of her barns...
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Accounting
Barbara is in the business of dairy farming. During the year, one of her barns was completely destroyed by fire. The adjusted basis of the barn was $80,000. The fair market value of the barn before the fire was $75,000. The barn was insured for 95% of its fair market value, and Barbara recovered this amount under the insurance policy. She has adjusted gross income of $40,000 for the year before considering the casualty). Determine the amount of loss she can deduct on her tax return for the current year
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