Marin operates a manufacturing business, and this year the three-year-old van she used in the business was destroyed in a fire. The van was originally purchased for $20,400 and the adjusted basis was $5,750 at the time of the accident. Although the van was worth $6,040 at the time of accident, insurance only paid Marin $1,250 for the loss. What is the amount of Marin's casualty loss deduction?

Multiple Choice

• $4,500.

• $14,360.

• $5,270.

• $6,040.

• $5,750.