Kenneth Kruise purchased a personal residence for $66,000. It had a fair market value of $80,000 in the current year when it was damaged by a fire. The fair market value after the fire was $40,000 and insurance proceeds totaled $15,000. What is the net amount of casualty loss he can claim if his adjusted gross income is $20,000 ? 1) $11,000 2) $24,900 3) $8,500 4) $22,900 5) None of these