A water line ruptures under pressure and floods the engine room causing $(USA)30,000 damage to the machinery. By law, this must be reported to the __________.

Correct Answer: Option D — U.S. Coast Guard

Marine casualties involving significant damage to machinery or vessel structure must be reported to the Coast Guard per 46 CFR Part 4. The reporting requirement is mandatory for incidents exceeding the regulatory monetary threshold, ensuring the OCMI can investigate the cause and ensure the vessel remains in compliance with safety standards.