Dolly is a cash basis taxpayer. In 2022, she filed her 2021 South Carolina income tax return and received a $2,200 refund. Dolly took the standard deduction on her 2021 Federal income tax return but will itemize her deductions in 2022. Molly, a cash basis taxpayer, also filed her 2021 South Carolina income tax return in 2022 and received a $600 refund. She deducted no other state or local taxes. Molly had $16,000 in itemized deductions on her 2021 Federal income tax return but will take the standard deduction in 2022. Complete the statements below regarding how the tax benefit rule applies to Dolly's and Molly's situations. Dolly: Dolly required to recognize income in 2022 from the receipt of the state income tax refund of $2,200. The refund reflects her overpayment and the original tax payment her taxable income because she claimed the standard deduction on her 2021 tax return. Therefore, the $2,200 refund is in 2022. Molly: Molly from the deduction on her 2021 Federal income tax return. As a result, the $600 refund she receives in 2022 is in 2022