Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $17,000 and the adjusted basis was $1,500 at the time of the accident. The taxi was repaired at a cost of $2,750 and insurance reimbursed Don $730 of this cost. What is the amount of Don's casualty loss deduction? A. $1,500.
B. $2,020
C. $770.
D. $2,750
E. Don is not eligible for a casualty loss deduction.

The blumer company entered into the following transactions during 2012: 1. the company was started with $22,000 of common stock issued to investors for cash. 2. on july 1, the company purchased land that cost $15,500 cash. 3. there were $700 of supplies purchased on account. 4. sales on account amounted to $9,500. 5. cash collections of receivables were $5,500. 6. on october 1, 2012, the company paid $3,600 in advance for a 12-month insurance policy that became effective on october 1. 7. supplies on hand as of december 31, 2010 amounted to $225. the amount of cash flow from investing activities would be: