10. Sandras automobile, which is used exclusively in her trade or business, was damaged in an accident. The adjusted basis prior to the accident was $11,000. The fair market value before the accident was $10,000 and the fair market value after the accident is $6,000. Insurance proceeds of $3,200 are received. What is Sandras adjusted basis for the automobile after the casualty? a. $0 b. $7,000 c. $7,800 d. $10,200 e. None of the above Answer is $7,000 Need help to work out.