Bobby is a self-employed taxpayer reporting his business income on Schedule C (Form 1040 or 1040-SR). Identity thieves gained access to his business checking account and stole $10,000. After completing Form 4684, Casualties and Thefts, where does Bobby report this on his tax return?

Schedule C (Form 1040 or 1040-SR), line 2.

Bobby cannot deduct the loss.

Form 4797, line 14.

Schedule A (Form 1040 or 1040-SR), line 16.