Compute the amount of casualty loss


Response to the following problem:

Reynaldo and Sonya, a married couple, had flood damage in their home due to a family water heater during 2010, which ruined the furniture in their garage. The following items were completely destroyed and not salvageable: Damaged Items Fair Market Value Just Prior to Damage Original Cost Antique poster $6000 $5000 Pool table $7000 $11,000 Large ' screen TV $700 $2500 Their homeowners insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net .payment of $2700. Their AGI was $30000.

What is the amount of casualty loss that Reynald and Sonya can claim on their joint return for 2010?

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Financial Accounting: Compute the amount of casualty loss
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