Last year, Sarah (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her home. Sarahs insurance company told her that her policy did not cover the theft. Sarahs other itemized deductions last year were $10,000. She had AGI of $30,000 last year. In August of the current year, Sarahs insurance company decided that Sarahs policy did cover the theft of the silverware and they paid Sarah $5,000. Determine the tax treatment of the $5,000 received by Sarah during the current year None of the $5,000 should be included in gross income. $2,900 should be included in gross income. $5,000 should be included in gross income. Last years return should be amended to include the $5,000. None of the above