Jerry sprayed all of the landscaping around his business with a pesticide in June 2023. Shortly thereafter, all of the trees and shrubs unaccountably died. The FMV and the adjusted basis of the plants were \($15,000.\) Later that year, the pesticide manufacturer announced a recall of the particular batch of pesticide that Jerry used. It also announced a program whereby consumers would be repaid for any damage caused by the improper mixture. Jerry is single and reports \($38,000\) AGI in 2023 and \($42,000\) in 2024.

a. Assume that in 2023 Jerry files a claim for his losses and receives notification that payment of \($15,000\) will be received in 2024. Jerry receives full payment for the damage in 2024. How should the loss and the reimbursement be reported?

b. How will your answer to Part a change if in 2024 the manufacturer files for bankruptcy and Jerry receives \($1,500\) in total and final payment for his claim?

c. How will your answer to Part a change if the announcement and the reimbursement do not occur until late in 2024, after Jerry has already filed his tax return for 2023?