John purchased a 75-inch ultra-high definition TV on 15 January 2020 for $7,500, which he installed in the living room in his residence. On 15 February 2020 Johns three-year-old nephew smashed the TVs screen with a wooden toy. The TV was not insured and never worked again.

Select the alternative that contains the correct advice to John in respect of the event described above:

Select one:

a. John should claim a deduction of $7,500 corresponding to the value of the TV.

b. John will need to include the $7,500 in his assessable income as it represents a capital gain.

c. John cannot offset the $7,500 against his other capital gains.

d. If John has other capital gains in the year, he must reduce his capital gains by $7,500, reflecting the loss of the TV.