13. This item is based on the following selected 2010 information pertaining to Sam and Ann Hoyt, who filed a joint federal income tax return for the calendar year 2010. The Hoyts had adjusted gross income of $34,000 and itemized their deductions for 2010. Among the Hoyts’ cash expenditures during 2010 were the following:

$2,500 repairs in connection with 2010 fire damage to the Hoyt residence. This property has a basis of

$50,000. Fair market value was $60,000 before the fire and $55,000 after the fire. Insurance on the property had lapsed in 2009 for nonpayment of premium.

$800 appraisal fee to determine amount of fire loss.

What amount of fire loss were the Hoyts entitled to deduct as an itemized deduction on their 2010 return?

a. $5,000

b. $2,500

c. $1,500

d. $1,100