QUESTION 24 When the waters of the Mississippi River began to overflow their banks and flood the surrounding area, Hermione was forced to leave her home and head for higher ground The flooding was identified as a foderally declared disaster. On 12/2/71, she returned to her home to find that it had been vandalized as well as damaged from the food. After cleaning up. she determined that the following items had been stolen or damaged Item Fur coat Computer Couch Van Adjusted Basis $6,000 4,000 1,200 7,000 Insurance EMV Before EMV After Reimbursement $7,000 $0 $7.000 3,000 SO Uninsured 800 See below 500 5,000 SO $4,000 The couch had been damaged and Hermione had it reupholstered for $700. The insurance company reimbursed her for the amounts shown on 12/27/41 In addition to the losses shown above, her real estate broker advised that even though her house had not been damaged by the food, the value had dropped by $20,000 since I was evident that it was located in an area prone to flooding Compute Hermione's casualty loss deduction, assuming his AG in Y1 was $18.000 a. 50 b. $1,300 OC. $3,100 d. $3,200 Oe. None of the above is correct