In 2014, Grant's Personal Residence Was Completely Destroyed by Fire

In 2014, Grant's personal residence was completely destroyed by fire. Grant was insured for 100% of his actual loss, and he received the insurance settlement. Grant had adjusted gross income, before considering the casualty item, of $30,000. Pertinent data with respect to the residence follows:
Cost basis $280,000
Value before casualty 250,000
Value after casualty -0-
What is Grant's allowable casualty loss deduction?

A) $0.
B) $6,500.
C) $6,900.
D) $10,000.
E) $80,000.