A flood completely destroyed Mr. and Mrs. Washingtons home on November 30 of 2018. The home was located in a federally declared disaster area. They claimed the loss on their current-year tax return. Based on the following facts, what is the amount of loss Mr. and Mrs. Washington can deduct for 2018?

Basis (contents not considered for this purpose) $110,000

Fair market value before flood 150,000

Fair market value after flood 30,000

Insurance reimbursement received

February 15 of the following year 80,000

Replacement February 1 of the following

year (property provided under disaster

relief programs of government agencies) 8,000

Adjusted gross income for the current year 40,000

A. $0

B. $17,900

C. $27,900

D. $35,900