Phillip's classic automobile was completely destroyed in a fire at the storage unit where he had it garaged. The fire was declared a federal disaster. The insurance company paid $10,000 on the vehicle. The auto's fair market value was $28,000, and his basis was $22,000. Phillip's AGI is $55,000. What is the amount of Phillip's deductible casualty loss?

A)

$6,500

B)

$6,400

C)

$12,500

D)

$12,400