In april of the current year, mr. beach, an accrual-basis taxpayer, had a $25,000 theft loss from inventory items held for sale to customers in the ordinary course of his business. in august of the current year, he received a $25,000 reimbursement from his insurance company to cover the loss. which of the following is a correct method of reporting the loss and reimbursement on beach's income tax return? a. include the $25,000 in ordinary income; the loss is accounted for in the cost of goods sold. b. do not report the loss as a separate item; do not include the $25,000 in ordinary income. c. include the $25,000 in ordinary income; decrease the cost of goods sold by the $100 casualty loss rule. d. apply the 10% adjusted gross income rule to the loss; the amount of the deductible loss would be the amount of the reimbursement to be included in ordinary income.