Virginia has a casualty gain of $5,000 and a casualty loss of $2,500, before reduction by the $100 floor. The gain and loss were the result of two separate casualties, and both properties were personal-use assets. What is Virginia's gain or loss as a result of these casualties?
a. $5,000 capital gain and $2,500 capital loss.
b. $5,000 capital gain and $2,400 itemized deduction, subject to the 10 percent of adjusted gross income limitation.
c. $5,000 capital gain and $2,500 itemized deduction, subject to the 10 percent of adjusted gross income limitation.
d. $5,000 capital gain and $2,400 capital loss.
e. None of these choices are correct.