Mary's diamond ring was stolen in 2016. She originally paid $8,000 for the ring, but it was worth considerably more at the time of the theft. Mary filed an insurance claim for the stolen ring, but the claim was denied. Because the insurance claim was denied, Mary took a casualty loss for the stolen ring on her 2016 tax return. In 2016, Mary had AGI of $40,000. In 2017, the insurance company had a "change of heart" and sent Mary a check for $5,000 for the stolen ring. The per event floor is $100.

What is the proper tax treatment of the $5,000 Mary received from the insurance company in 2017?

Mary should include as income in 2017 in the amount of $ .

During the past tax year, Jane identified $50,000 as a nonbusiness bad debt. In that tax year, Jane had $100,000 of taxable income, of which $5,000 consisted of short-term capital gains. During the current tax year, Jane collected $10,000 of the amount she had previously identified as a bad debt.

Jane deducted an overall $ ?

• 3,000
• 5,000
• 45,000
• 50,000

net short-term capital loss in the past year. Therefore, Jane would have to include

$ in gross income in the current year.