In December $2023,$ Exandria, a cash basis taxpayer, paid $$1,200$ fire insurance for the calendar year $2024$ on a building held for rental income. Exandria deducted the $$1,200$ insurance premiums on the $2023$ tax return. Exandria had $$150,000$ of taxable income that year. On June $30,2024,$ Exandria sold the building and, as a result, received a $$500$ refund on the fire insurance premiums. As a result: