Question 1: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

In December 2021, Mariya, a cash basis taxpayer, paid $2,200 of hurricane insurance premiums for the calendar year 2022 on a condo she held for rental income. Mariya deducted the $2,200 of insurance premiums on her 2021 tax return. Her taxable income was $160,000 that year. On July 31, 2022, she sold the building and, as a result, received a $700 refund on her hurricane insurance premiums. As a result of the above: A. Mariya should include the $700 in 2022 gross income in accordance with the claim of right doctrine.

B. Mariya should include the $700 in 2022 gross income in accordance with the tax benefit rule.

C. Mariya should amend her 2021 return and claim $700 less insurance expense.

D. None of these.

E. Mariya should add the $700 to her sales proceeds from the building.

Question 2: (Please explain your answer) (Please note all questions are for USA Federal Income Taxation)

Andrew and Jasmine are ages 78 and 67, respectively, and file a joint return in 2021. If they have itemized deductions of $27,000, they should claim the standard deduction.

True or False