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

question 35

Multiple Choice

Constance,who is single,is in an automobile accident in 2016,and her car sustains $6,200 in damages.Constance does not expect to recover any of the loss from her insurance company.Constance's 2016 AGI is $31,000.Her casualty loss is $3,000;she has other itemized deductions of $1,200.In 2017,Constance's insurance company reimburses her $2,800.Constance's 2017 AGI is $28,000.As a result,Constance must

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

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Definitions:

Complementary Resources

Assets or inputs in a business that work together to increase efficiency or create a greater competitive advantage.

Synergistic Benefits

Gains achieved by combining different parts of a business or companies that work better together than separately.

Merger

The combination of two or more companies into a single entity, often to expand product lines or markets.

Synergy

The positive incremental net gain associated with the combination of two firms through a merger or acquisition.