Michael owns a hair salon. During the current year, a tornado severely damages the salon and destroys his personal automobile, which is parked outside. It costs Michael $12,000 to make the necessary repairs to the salon. He had paid $21,500 for the automobile, which was worth $17,100 before the tornado. Michael’s business insurance reimburses him for $7,000 of the salon repair costs. His automobile insurance company pays only $12,000 for the automobile destruction. Michael’s adjusted gross income is $34,000 before considering the effects of the tornado. Write a letter to Michael explaining his deductible casualty loss from the tornado.