Juanita,who Is Single,is in an Automobile Accident in 2016 and Her

question 32

Multiple Choice

Juanita,who is single,is in an automobile accident in 2016 and her car sustains $6,200 in damages.Juanita does not expect to recover any of the loss from her insurance company.Juanita's 2016 AGI is $31,000,and she deducts a $3,000 loss on her 2016 tax return.Her other itemized deductions in 2016 exceed $12,000.In 2017,Juanita's insurance company reimburses her $2,800.Juanita's 2017 AGI is $28,000.As a result,Juanita must

• A)amend 2016 to show a $200 loss.
• B)do nothing and simply keep the $2,800.
• C)do nothing to the 2016 return but report $2,800 of income on her 2017 return.
• D)amend the 2016 return to show $0 loss and file her 2017 return to show a $200 loss.

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Definitions:

Performance-Based Pay

A compensation system where an employee's pay is directly linked to their performance or achievements, incentivizing efficiency and productivity.

Job Content-Based Pay

A compensation strategy where wages are determined by the nature, complexity, and responsibility level of the work performed, rather than by the individual characteristics of the employee.

Extrinsic Rewards

Benefits given to an individual, such as pay, bonuses, or other incentives, which come from an external source rather than the satisfaction from the task itself.

Intrinsic Motivation

A drive to engage in activities due to internal rewards and personal satisfaction, rather than for external rewards.