Multiple Choice
Sandra's automobile, which is used exclusively in her trade or business, was damaged in an accident. The adjusted basis prior to the accident was $11,000. The fair market value before the accident was $10,000 and the fair market value after the accident is $6,000. Insurance proceeds of $3,200 are received. What is Sandra's adjusted basis for the automobile after the casualty?
A) $0
B) $7,000
C) $7,800
D) $10,200
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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