A Flood (Federally Declared Disaster)destroyed an Antique Persian Rug Owned

A flood (federally declared disaster) destroyed an antique Persian rug owned by Mr.and Mrs.McConnell.The couple purchased the rug for $13,000 fifteen years ago,but its appraised FMV before the flood was $42,500.Unfortunately,their homeowners' insurance policy does not cover flood damage.Compute the McConnells' casualty loss (before the 10% AGI threshold) .

A) $41,900
B) $42,000
C) $13,000
D) $12,900