Dawn started her own rock band on January 2, 2018. She acquired all her equipment on January 2, 2018, and did not dispose of any of it before 2020. On April 15, 2020, the band's amplifiers, speakers, and other electronic equipment are stolen after a concert. The stolen equipment's basis is $15,400, and its fair market value before the theft is $24,400. The insurance company reimburses Dawn $24,400. Her road bus runs off the highway on September 13, 2020. The basis of the bus is $60,500. Its fair market value before the accident is $79,300, and the fair market value after the accident is $69,900. The insurance company reimburses Dawn $4,800 for the bus accident. Dawn's other financial gains and losses during 2020 are: Section 1231 Gains $7,900 Section 1231 Losses 8,600 What is the effect of these transactions on Dawn's 2020 taxable income? The net casualty gain of $ X is treated as a Section 1231 gain . Overall, Dawn has a net Section 1231 gain of $ X