Constance,who Is Single,is in an Automobile Accident in 2017,and Her

question 75

Multiple Choice

Constance,who is single,is in an automobile accident in 2017,and her car sustains $6,200 in damages.Constance does not expect to recover any of the loss from her insurance company.Constance's 2017 AGI is $31,000.Her casualty loss is $3,000; she has other itemized deductions of $1,200.In 2018,Constance's insurance company reimburses her $2,800.Constance's 2018 AGI is $28,000.As a result,Constance must

• A)amend the 2017 return to show the $200 loss.
• B)do nothing and simply keep the $2,800.
• C)amend the 2017 return to show $0 loss and file her 2018 return to show $200 loss.
• D)do nothing to the 2017 return but report $2,800 of income on her 2018 return.