In 2014, Wally Had the Following Insured Personal Casualty Losses $\quad$

In 2014, Wally had the following insured personal casualty losses (arising from one casualty) . Wally also had $42,000 AGI for the year before considering the casualty.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {Fair Market Value} \quad\quad \text {Insurance}$
$\begin{array}{rrrrr}\text { Asset } & \text { Adjusted Basis } & \text { Before } & \text { After }&\text { Recovery }\\ \hline\text { A } & \$ 9,200 & \$ 8,000 & \$ 1,000 & \$ 2,000 \\\text { B } & 3,000 & 4,000 & -0- & 4,000 \\\text { C } & 3,700 & 1,700 & -0 -& 900\end{array}$

Wally's casualty loss deduction is:

A) $1,500.
B) $1,600.
C) $4,800.
D) $58,000.
E) None of the above.