Wade Duval (SSN 321-54-9876) is in the business of teaching people to surf. On S
ID: 2574094 • Letter: W
Question
Wade Duval (SSN 321-54-9876) is in the business of teaching people to surf. On September 7, 2017, he received a $45,000 insurance recovery on a small building used in his surfing business, which was destroyed by fire (FMV before the fire was $65,000). Its adjusted basis just before the fire was $50,000. The replacement value was deemed to be $50,000. Depreciation of $3,500 in excess of straight-line had been allowed for prior tax years. Wade has decided to use rented space rather than rebuild for at least the next 5 years.
Using the information above, fill in the shaded cells to complete Section B of Form 4684. Round answers to the dollar. If the value of a cell is zero or if the cell should be left blank, you must enter a zero (0) to receive credit for your answer.
Find what goes in for #20, 21, 23, 24, 25, 26, 27, 28, 34, 35, 37, 38a in the Form 4684
Explanation / Answer
Ans :
Point - 20 : $50,000
21: $45,000
22: $0
23 : $ 65000
24 :$ 0( not applicable)
25 : $$65000 - $0 = $ 65000
26 :$ 50000
27 : $5000(50000-45000)
28 :$5000
32: since there is no details given in the sum regarding properties date of purchase and put to use of property we will assume that property was not held for one year or less and hence not to be shown anything over here.
34:$5000
35:$5000
37:$5000
38a :$5000 +0=$5000
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