Deductible casualty loss for each casualty event =
A. change in FMV - $100 - 10% AGI
B. change in FMV - 10% AGI
C. adjusted basis - insurance recovery - $100 - 10% AGI
D. the lessor of adjusted basis or the difference between FMV of property immediately before and FMV immediately after - insurance recovery - $100 - 10% AGI
Answer: D.