In 2020, Wally had the following insured personal casualty losses (arising from one casualty in a Federally declared disaster area). Wally also had $ 42,000 AGI for the year before considering the casualty. Fair Market Value Asset Adjusted Basis Before After Insurance Recovery ABC $9,200 $8,000 $1,000 $2,000 3,000 4,000 -0- 4,000 3,700 1,700 -0- 900 Wally's casualty loss deduction is: a. $1,500 b. $1,600 c. $2,000 d. $2,800 e. $3,500