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

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.