Dawson's office was flooded in the current year when an upriver dam broke. The office furniture had been purchased in the previous year at a total cost of $6,000, and Dawson had claimed $1,500 in depreciation before the flood. The fair market value of the furniture before the flood was $5,000 and after the flood was $1,000. Dawson was reimbursed $2,000 by insurance. Dawson's casualty loss was: