An insured dump truck that Harvey used in his business was destroyed in an accident. At the time of the accident, the adjusted basis was $10,000 and the market value was $7,500. Harvey receives insurance proceeds of $7,500. The amount of the casualty loss is $3,500.
True
False
True
The amount of the casualty loss is $3,500 ($7,500 insurance proceeds - $10,000 adjusted basis).