A Flood (A Federally Declared Disaster) Destroyed an Antique Persian

A flood (a 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