Question

Jim was in an auto accident this year. Jim paid $2,450 to repair his car after the accident and his insurance only reimbursed him $400. Jim bought his car several years ago for $1,500. What is the amount of casualty loss from this accident before Jim applies any casualty loss floor limitations?

A. $2,450.

B. $2,050.

C. $1,500.

D. $1,100.

E. None of these is correct.

Answer 1

The amount of casualty loss from the accident before Jim applies any casualty loss floor limitations is $2,050.

Step-by-step explanation:

The amount of casualty loss from the accident before Jim applies any casualty loss floor limitations is $2,050.

To calculate the casualty loss, we start with the cost to repair the car, which is $2,450. Then we subtract the reimbursement from insurance, which is $400. The result is $2,050, which represents the casualty loss.