Malcolm Moore, single, had medical expenses of $5,000 last year and took a $3,000 deduction. He was reimbursed $4,500 this year by his insurance company. His total itemized deductions last year were $12,000. What amount must he include in this year's tax return as gross income? 1) $5,000 2) $4,500 3) $3,000 4) $2,700 5) None of these