Riley operates a plumbing business and this year the 3-year old van he used in the business was destroyed in a traffic accident. The van was originally purchased for $20,800 and the adjusted basis was $5,700 at the time of the accident. Although the van was worth $6,080 at the time of accident, insurance only paid Riley $1,300 for the loss. What is the amount of Riley's casualty loss deduction?

Multiple Choice

$4,400.

$5,700.

$14,720.

$6,080.

$5,240.