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

question 32

Multiple Choice

Juanita,who is single,is in an automobile accident in 2016 and her car sustains $6,200 in damages.Juanita does not expect to recover any of the loss from her insurance company.Juanita's 2016 AGI is $31,000,and she deducts a $3,000 loss on her 2016 tax return.Her other itemized deductions in 2016 exceed $12,000.In 2017,Juanita's insurance company reimburses her $2,800.Juanita's 2017 AGI is $28,000.As a result,Juanita must

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

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Definitions:

Data

Collected information or facts, typically numerical, that are used as a basis for reasoning, discussion, or calculation.

Categorical Variable

A type of variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual or other unit of observation to a particular group or nominal category.

Social Security Number

A unique nine-digit number assigned to U.S. citizens, permanent residents, and temporary working residents that is used for tracking individuals for social security and taxation purposes.

Age

The length of time that a person or entity has been alive or existed.