John Hughes Is in the Business of Truck Farming (I

John Hughes is in the business of truck farming (i.e., growing tomatoes, bell peppers and green beans) . During the year, one of his barns was completely destroyed by fire. fte adjusted basis of the barn was $100,000. fte fair market value of the barn before the fire was $80,000. fte barn was insured for 90% of its fair market value and John recovered this amount under the insurance policy. John has adjusted basis for the year of $60,000 (before considering the casualty) . Determine the amount of loss he can deduct on his tax return for the current year.

A) $4,000
B) $24,000
C) $28,000
D) $20,000