Ford's Automobile That He Uses 100% for Business Is Vandalized

Multiple Choice

Ford's automobile that he uses 100% for business is vandalized. The adjusted basis before the vandalism is $3,000. The fair market value of the car before the vandalism is $7,000, and the fair market value of the property after the vandalism is $2,000. Ford's insurance does not cover vandalism. What is Ford's loss deduction for the year?

A) $- 0 -
B) $1,000
C) $2,000
D) $3,000
E) $5,000