Kevin owns a hardware store and lost some merchandise in a burglary. Which of the following is a true statement as to how Kevin should report these losses on his tax return?

a) He must record these losses through increases to cost of goods sold.

b) He can claim the losses as casualty and theft losses.

c) Insurance reimbursements that he received for the loss of inventory are not taxable.

d) He may not choose to record these losses separately.