Joanne,a Single Individual,has $2,000 in State Taxes Withheld from Her

Joanne,a single individual,has $2,000 in state taxes withheld from her salary in 2016.Her total itemized deductions are $6,350.She claims the $2,000 as an itemized deduction on her 2016 tax return.In 2017 she receives a state income tax refund of $700.Under the tax benefit rule she has to report income in 2017 of

A) $2,000
B) $ 700.
C) $ 50.
D) $ -0-.
E) $ -0-, but Joanne must file an amended 2016 tax and reduce her itemized deductions by $700.