In December $2024,$ Todd, a cash basis taxpayer, paid $$1,200$ of fire insurance premiums for the calendar year $2025$ on a building he held for rental income. Todd deducted the

$$1,200$ of insurance premiums on his $2024$ tax return. He had $$150,000$ of taxable income that year. On June $30,2025,$ he sold the building and, as a result, received a $$500$ refund

on his fire insurance premiums. As a result of the above:

a$.$ Todd should amend his $2024$ return and claim $$500$ less insurance expense.

b$.$ Todd should include the $$500$ in $2025$ gross income in accordance with the tax benefit rule.

C$.$ Todd should include the $$500$ in $2025$ gross income in accordance with the claim of right doctrine.

d$.$ Todd should add the $$500$ to his sales proceeds from the building.