Kenneth Kruise purchased a personal residence for $266,000. It had a fair market value of $280,000 in the current year when it was damaged by a flood that resulted in the entire area being declared a federal disaster areA. The fair market value after the flood was $240,000 and insurance proceeds totaled $15,000. What is the net amount of casualty loss he can claim if his adjusted gross income is $120,000?

a.

$12,900;

b.

$25,000;

c.

None of these.

d.

$24,900;

e.

$8,500;