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.

---

Definitions:

Illustration

A visual representation or artwork created to explain, clarify, or adorn textual information.

Transition

A word, phrase, or passage that links one subject or idea to another in speech or writing, ensuring smooth flow.

Cause-Effect

A relationship in which one event (the cause) makes another event happen (the effect).

Coherence Device

Tools or strategies used in writing or speech to ensure the logical flow of ideas and clear connection between them.