32) Jack Jones has the following casualty gains and losses in 2018: (a) gain on the destruction by fire of hardware store--$10,000; (b) loss on destruction by hurricane of residential rental property--$15,000; and (c) loss on theft of jewelry--$5,000. All of the assets were held for more than one year. Sam should report:

$10,000 net Section 1231 loss.

$10,000 ordinary gain and $20,000 itemized deduction.

$10,000 ordinary loss.

$15,000 ordinary loss.

$5,000 ordinary loss.