Valeria purchased a home for $320,000 six years ago. A recent hurricane partially damaged the home. The fair market value of the house before the damage was $475,000. After the damage by the hurricane, the value of the house fell to $300,000. How much and what type of loss does Valeria recognize?

Group of answer choices

a $320,000 1231 loss

a $175,000 personal casualty loss

a $155,000 passive activity loss

a $175,000 at risk loss