Zack, a self-employed taxpayer with AGI of $60,000, operates a bakery. This year, one of Zack ovens caught fire and was completely destroyed. Zack adjusted basis in the oven was $8,000 and he paid $10,000 to replace it. The fire also damaged a kitchen cabinet located near the oven. Zack basis in the cabinet was $1,000 and he paid $600 to repair it. Zack insurance company paid $6,000 as reimbursement of his losses on the oven and cabinet. What is the amount of Zack casualty loss deduction?

		$0
		$2,600
		$3,600
		$2,500
		$5,000