Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $21,500 and the adjusted basis was $1,250 at the time of the accident. The taxi was repaired at a cost of $2,875 and insurance reimbursed Don $745 of this cost. What is the amount of Don's casualty loss deduction? Multiple Choice $505 $2,875 $2,130 $1,250 Don is not eligible for a casualty loss deduction