This year Amy purchased $2,200 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation expense for the equipment.

After the accident, Amy could not replace the equipment so she had the equipment repaired for $2,800. What amount can Amy deduct for the loss of the equipment?