Margarita, a Single Individual, Has $2,000 in State Taxes Withheld

Margarita, a single individual, has $2,000 in state taxes withheld from her salary in 2013. Her total itemized deductions are $7,500. She claims the $2,000 as an itemized deduction on her 2013 tax return. In 2014, she receives a state income tax refund of $400. Under the tax benefit rule she has to report income in 2014 of

A) $2,000.
B) $ 400.
C) $ 200.
D) $ -0-.
E) $ -0-, but Margarita must file an amended 2011 tax and reduce her itemized deductions by $400.