Jim Had a Car Accident in 2019 in Which His

Multiple Choice

Jim had a car accident in 2019 in which his car was completely destroyed.At the time of the accident, the car had a fair market value of $30,000 and an adjusted basis of $40,000.Jim used the car 100% of the time for business use.He received an insurance recovery of 70% of the value of the car at the time of the accident.If Jim's AGI for the year is $60,000, determine his deductible loss on the car.

A) $900
B) $2,900
C) $3,000
D) $9,000
E) None of these.