Juanita,who Is Single,is in an Automobile Accident in 2015 and Her

question 53

Multiple Choice

Juanita,who is single,is in an automobile accident in 2015 and her car sustains $6,200 in damages.Because both drivers received tickets in the accident,Juanita does not expect to recover any of the loss from her insurance company.Juanita's 2015 AGI is $31,000,and she deducts a $3,000 loss on her 2015 tax return.Her other itemized deductions in 2015 exceed $12,000.In 2016,Juanita's insurance company reimburses her $2,800.Juanita's 2016 AGI is $28,000.As a result,Juanita must

• A)amend 2015 to show a $200 loss.
• B)do nothing and simply keep the $2,800.
• C)do nothing to the 2015 return but report $2,800 of income on her 2016 return.
• D)amend the 2015 return to show $0 loss and file her 2016 return to show a $200 loss.

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Definitions:

Abolish Slavery

The act of ending slavery, a system in which individuals are owned by others, denying them personal freedom.

Vermont

A state in the northeastern United States known for its natural landscapes and being the first to abolish adult slavery in its constitution.

Three-Fifths Compromise

A constitutional agreement that each slave would be counted as three-fifths of a person for the purposes of taxation and representation.

Constitution

is the supreme law of a country, outlining the framework for its governance and the rights and duties of its citizens.