Jane bought an old mountain cabin as a second home and began to remodel it.

Immedately after she had removed the old appliances and cleaned the cabin, a fire destroyed it.

The cost of the cabin was $100,000 (including $10,000 for the land.

The fair market value (FMV of the property before the fire was $120,000. (105,000 for the building, and $15,000 for the land)

After the fire, the FMV was $15,000 (value of the land) Jane collected $85,000 from the insurance company.

Her casualty loss (before the $100 and 10% limits) is