LO.3 Molly is a cash basis taxpayer. In 2012, she earned only $6,500, which was less than her standard deduction and personal exemption. In January 2013, Molly’s employer determined that he had miscalculated her December 2012 bonus and that she should have received an additional $1,000 of compensation in 2012. The employer paid Molly the $1,000 in 2013. If Molly had received the $1,000 in 2012, it would not have resulted in any tax liability because her gross income would still have been less than her standard deduction and personal exemption. In 2013, Molly had over $30,000 in taxable income. Does the tax benefit rule apply to Molly’s situation? Explain.