Assume that a building used by Carter County's police department is totally destroyed by a fire. It is then discovered that the building was not properly insured and that its current net book value was $170,000. The controller, Austin Miller, estimated that it will cost $350,000 to replace the building. The loss that would be reported in the General Fund for the reporting period in which the fire occurred would be:

a. $170,000 (current net book value).

b. $350,000 (estimated replacement cost).

c. $180,000 (the difference between the net book value and the estimated replacement cost).

d. $0.

e. None of the above.