Jim Had a Car Accident in 2014 in Which His

Jim had a car accident in 2014 in which his car was completely destroyed. At the time of the accident, the car had a fair market value of $30,000 and an adjusted basis of $40,000. Jim used the car 100% of the time for business use. Jim received an insurance recovery of 70% of the value of the car at the time of the accident. If Jim's AGI for the year is $60,000, determine his deductible loss on the car.

A) $900.
B) $2,900.
C) $3,000.
D) $9,000.
E) None of the above.