1. Alicia was involved in an automobile accident in 2020. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If her AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss.

	a.	$34,000; $-0-.
	b.	$50,000; $-0-.
	c.	$34,000; $4,500.
	d.	$26,000; $5,700.

I would like to know the correct anwser and why. I chosed C, but it was wrong.