In 2019, Grant's Personal Residence Was Completely Destroyed by Fire

Multiple Choice

In 2019, Grant's personal residence was completely destroyed by fire.He 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: $$\begin{array} { l r } \text { Cost basis } & \$ 280,000 \\\text { Value before casualty } & 250,000 \\\text { Value after casualty } & - 0 -\end{array}$$ What is Grant's allowable casualty loss deduction?

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