In 2017, Taxpayers personal residence was partially destroyed by fire. Taxpayer was insured for his actual loss, and he received the insurance settlement of $50,000. Taxpayer had adjusted gross income, before considering the casualty item, of $30,000. Pertinent data with respect to the residence follows:

Cost basis $280,000

Value before casualty 250,000

Value after casualty 120,000

What is Taxpayer 's allowable casualty loss deduction?

A. $77,000

B. $80,000

C. $130,000

D. None of the other choices are correct.

E. $76,900

F. $0