Ahram's Imports Had an Entire Shipping Container of Oriental Rugs

Essay

Ahram's Imports had an entire shipping container of oriental rugs seized by the government of Afghanistan in 2011.The insurance company refused to pay the estimated loss of $500,000,since it was caused by an "act of war." The loss will reduce Ahram's income taxes by $70,000.
Required: Show how these amounts would be reported on Ahram's income statement for the year ended December 31,2011.