Question

What is the casualty loss if an asset is completely destroyed or stolen?

1) Full market value of the asset
2) Half market value of the asset
3) No loss
4) Cannot be determined

Answer 1

The casualty loss if an asset is completely destroyed or stolen is the full market value of the asset.

Step-by-step explanation:

The casualty loss if an asset is completely destroyed or stolen is the full market value of the asset. When an asset is completely destroyed or stolen, the owner experiences a financial loss equivalent to the current market value of the asset. This is because the owner can no longer benefit from the asset or sell it in the future.