In 2011,a Flash Flood in Death Valley Destroyed Desert Dave's

Essay

In 2011,a flash flood in Death Valley destroyed Desert Dave's Watering Hole and its entire inventory.Net losses after insurance payments came to $34,000.The Watering Hole was able to claim a casualty loss on its tax return and got a tax reduction of $12,000.
Required: Show how these amounts would be reported on the Watering Hole's income statement for the year ended December 31,2011.