Constance,who Is Single,is in an Automobile Accident in 2014,and Her

question 51

Multiple Choice

Constance,who is single,is in an automobile accident in 2014,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 2014 AGI is $31,000.Her casualty loss is $3,000; she has other itemized deductions of $1,200.In 2015,Constance's insurance company reimburses her $2,800.Constance's 2015 AGI is $28,000.As a result,Constance must

• A)amend the 2015 return to show the $200 loss.
• B)do nothing and simply keep the $2,800.
• C)amend the 2014 return to show $0 loss and file her 2015 return to show $200 loss.
• D)do nothing to the 2014 return but report $2,800 of income on her 2015 return.

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Definitions:

Dissolve

To dissolve is to officially end the existence of an entity or agreement, such as dissolving a corporation or dissolving a marriage through divorce.

Bankruptcy

A judicial process that enables individuals or businesses struggling to fulfill their financial commitments to obtain relief from part or all of their debts.

LLC Member

An individual or entity that owns a part of a Limited Liability Company and has certain rights and responsibilities as outlined in the LLC's operating agreement.

Dissociation

The process or condition of disconnecting or separating from an association, partnership, or relationship.