A flood damaged an auto owned by Mr. and Mrs. North on August 1 of this year. The car was only used for personal purposes.

Fair market value before the flood	$17,500
Fair market value after the flood	2,500
Cost basis	22,500
Insurance proceeds	12,500
Adjusted gross income for this year	20,000
Business use of auto	0

Based on these facts, what is the amount of the South's casualty loss deduction after limitations for this year?

A) $400

B) $2,500

C) $5,000

D) $20,000