In 2015, the Rinaldis' vacation cottage was severely damaged by an earthquake. They had AGI of $110,000 in 2015. Following is information related to the cottage:

Cost basis.................................$95,000

FMV before casualty...............135,000

FMV after casualty....................20,000

The Rinaldis had insurance and received an $80,000 insurance settlement.

What is the amount of allowable casualty loss deduction for the Rinaldis in 2015 before the AGI and event limitation?

a. $ 3,900.

b. $14,900

c. $15,000

d. $ 45,000