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:

Units Produced

The total number of complete units that are manufactured during a specific period.

Indirect Manufacturing Cost

Costs related to production that cannot be directly attributed to specific products, such as maintenance, utilities, and supervision.

Units Produced

The total number of complete products that are manufactured or processed by a company within a specific period.

Period Costs

Period costs are expenses that are not directly tied to the production process and are charged to the accounting period in which they are incurred, such as sales and administrative expenses.