On the night of January 10, Year 1, a tornado caused serious damage to John's office building and its contents. Just prior to the tornado, the office building had a $250,000 adjusted basis and a fair market value of $300,000; the contents had an adjusted basis of $4,000 and a fair market value of $3,000. The building and the contents immediately after the tornado are appraised at $240,000 and $0, respectively. While the insurance company agreed to pay Allison $49,000 for the damage to the building, its contents were not covered. John estimates that is will cost her $10,000 to replace all the contents. John's Year 1 AGI is $120,000. What amount of casualty loss deduction may John claim for Year 1 as a result of the tornado?

	a.	$35,000
	b.	$40,000
	c.	$22,900
	d.	$15,000