In 2018, Gregory, a single taxpayer who is age 40, reports the following items of income and expense: Adjusted gross income $40,000, Medical expense (before percentage limit) $5,000, Itemized deductions other than medical $10,400 In 2019, Gregory receives a reimbursement for last years medical expenses of $1,200. As a result, Gregory must:

a. Include $400 in gross income for 2019

b. Include $1200 in gross income for 2019

c. Reduce 2019s medical expenses by 1200

d. Amend the 2018 return and reduce medical expenses by 1200