A Flood Forced a to Live in a Hotel for Two

A flood forced A to live in a hotel for two months before she could return home.On average, it cost A $600 per month to live in her home.A's insurer paid out to A a total of $3,600: $1,800 for each of the two months to cover temporary living costs.A paid a corresponding $3,000 hotel bill.Of the $3,600 paid by the insurance company, how much, if any, is taxable to A?

A) $1,800
B) $3,600, reduced by the statutory multiplier
C) $600
D) $0
E) $2,400