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22. Norms car, which he uses 100% for personal purposes, was completely destroyed in an...

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Accounting

22. Norms car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2020. The cars adjusted basis at the time of the accident was $13,000. Its fair market value was $10,000. The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because he feared that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,000 (before considering the loss). What is Norms deductible loss?

a. $0 b. $100 c. $500 d. $9,500 e. None of the above.

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