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A tornado damaged Louise's home on August 17, this year. To restore the destroyed property she paid the following amounts: $80,000 to repair the damage

A tornado damaged Louise's home on August 17, this year. To restore the destroyed property she paid the following amounts:

$80,000 to repair the damage to the house. The house originally cost $70,000 and was worth approximately $90,000 at the time of the tornado.

Louise filed a claim with her insurance company and received $65,000. She has AGI of $30,000.

If the tornado also caused $2,000 damage to Louise's furniture and all other facts remained the same, the amount of Louise's deductible casualty loss would be:

a.

a. $5,000.

b.

b. $3,900.

c.

c. $7,000.

d.

d. $92,000.

e.

e. None of the above.

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