Ann Jones uses a dry cleaning machine in her business, and it was partially destroyed by fire. At the time of the fire, the adjusted basis was $20,000 and its fair market value was $18,000. The business was uninsured. The adjusted basis after the fire is $10,000 and the fair market value after the casualty is $10,000. How much is the casualty loss? Question 7 options: 1) $20,000 2) $10,000 3) $8,000 4) $18,000