Alicia Was Involved in an Automobile Accident in 2019

Multiple Choice

Alicia was involved in an automobile accident in 2019.Her car was used 60% for business and 40% for personal use.The car had originally cost $40,000.At the time of the accident, the car was worth $20,000 and Alicia had taken
$8,000 of depreciation.The car was totally destroyed and Alicia had let her car insurance expire.If her AGI is
$50,000 (before considering the loss) , determine her AGI and itemized deduction for the casualty loss.

A) $34,000; $-0-.
B) $50,000; $-0-.
C) $34,000; $4,500.
D) $26,000; $5,700.
E) None of these.