Walt, a shoe store owner, loses part of his inventory because of a small fire in the stockroom of his store. He reports this to his insurance company and receives a reimbursement for the loss, less his deductible. How should Walt report this on his tax return?

a) Walt can claim the loss of inventory as a casualty or theft loss.

b) Walt can claim the insurance reimbursement as an expense on Schedule C.

c) Walt can claim the loss of inventory under "other expenses" on Schedule C.

d) Walt should report any insurance reimbursement received for the loss of inventory as other income.