Business Casualty Losses One of your client BC LLC bought an apartment complex on 01/01/2004. Total Cost of apartment including land was $8,726,210. Accumulated Depreciation as of 12/31/2014 was 4,513,597. BC refinanced the entire loan in 2009. Loan origination cost in 2009 was 333,777 and as of 12/31/2014 accumulated loan amortization was 109,934. Mortgage balance on 12/31/2014 was 3, 689,932. On June 1, 2015 Tornedo hit the apartment complex and caused a considerable damage. Half the units became inhabitable. BC returned the security deposits of the tenants and the tenants moved out. Only half of the units are rented out since July 1, 2015. The insurance company so far has paid $2.5 million in 2015. The insurance company is coming back in 2016 to determine the amount of loss. BC does not know when insurance company will settle the case. Required: How to account for $2.5 million payment from Insurance Company How and when to claim expenses for environmental cleanup and asbestos removal How much depreciation to claim in 2015