The standard adopted by the Supreme Court in BlissDairy/Hillsboro National Bank for the tax benefit rule is asfollows:

a. The taxpayer must always include in income an amount formerlydeducted if he or she receives a recovery of that amount.

b. Whether the taxpayer must include an amount in income is aquestion of fact to be determined on a case-by-case basis.

c. The taxpayer must include an amount in income where an eventoccurs that is inconsistent with the original deduction.

d. Both B and C.