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

question 30

Multiple Choice

Constance,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,Constance does not expect to recover any of the loss from her insurance company.Constance's 2015 AGI is $31,000.Her casualty loss is $3,000; she has other itemized deductions of $1,200.In 2016,Constance's insurance company reimburses her $2,800.Constance's 2016 AGI is $28,000.As a result,Constance must

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

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Definitions:

Pollution

is the presence or introduction into the environment of substances or things that have harmful or poisonous effects.

Savings & Loan Scandal

A financial scandal involving the collapse of numerous savings and loan associations in the late 1980s and early 1990s, primarily due to risky business practices and regulatory failures.

White-collar Criminals

Individuals who commit crime related to their occupation, often involving fraud, embezzlement, or corruption, typically without direct physical force.

Embezzlers

Individuals who fraudulently appropriate funds or property entrusted to their care for their own use.