Don Operates a Taxi Business, and This Year One of His

Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $19,500 and the adjusted basis was $1,400 at the time of the accident. The taxi was repaired at a cost of $2,800 and insurance reimbursed Don $736 of this cost. What is the amount of Don's casualty loss deduction?

A) $664
B) $2,800
C) $2,064
D) $1,400
E) Don is not eligible for a casualty loss deduction