Hank's home is burglarized on December 22, 2017. Personal property with a fair market value of $40,000 and an adjusted basis to Hank of $25,000 is stolen. Hank paid an independent appraiser $700 on December 29 to determine the fair market value of the property at the time of the break-in. Hank's homeowner's insurance policy leads him to believe he is entitled to receive $15,000 in reimbursement for the event, but no settlement has been made with the insurance company by yearend. Hank's AGI in 2017 is $30,000. How much may Hank deduct from AGI as a result of these facts on his 2017 tax return? Assume Hank itemizes, and assume there has still been no settlement with the insurance company at the time of filing.
a. $7,000
b. $21,900
c. $6,900
d. $22,000