During the Year,Greta's Mountain Cabin Was Almost Completely Destroyed by a Fire

During the year,Greta's mountain cabin was almost completely destroyed by a fire started in the kitchen.She had adjusted gross income of $110,000 in 2017 and related data with respect to the cabin follows: $\begin{array}{lr}\text { Cost basis: }&\$121,000\\\text { Value before casualty: }&\$155,000\\\text { Value after casualty: }&\$15,000\end{array}$
Greta was partially insured for the loss and in 2017 she received a $100,000 insurance settlement.What is Greta's allowable casualty loss deduction for 2017?

A) $9,900.
B) $20,000.
C) $35,900.
D) $55,000.

Correct Answer:

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