This year Amy purchased $2000 of equipment for use in her business. However th

This year Amy purchased $2000 of equipment for use in her business. However the machine was damaged in a traffic accident while Amy was transporting the
equipment to her business. Note that because Amy did not place the equipment into service during the year she does not claim any depreciation expense for
the equipment.

a. After the accident Amy had the choice of repairing the equipment for $1800 or selling the equipment to a junk shop for $300. Amy sold the equipment.
What amount can Amy deduct for the loss of the equipment?

b. After the accident Amy repaired the equipment for $800. What amount can Amy deduct for the loss of the equipment?

c. After the accident Amy could not replace the equipment so she had the equipment repaired for $2300. What amount can Amy deduct for the loss of the
equipment?