On December 30, 2020, Mr. and Mrs. Anchors personally owned yacht was wrecked in a federally declared disaster. Based on the following information, what is the amount of loss Mr. and Mrs. Anchor can deduct for 2020?

Fair market value of yacht before the wreck	$ 34,500
Fair market value of yacht after the wreck	0
Adjusted basis of yacht before wreck	40,000
Insurance reimbursement received 2/1/20	19,500
Replacement cost	45,000
Adjusted gross income for 2020	100,000

• A.$24,400

• B.$34,500

• C.$4,900

• D.$40,000