Question

eBook Calculator Print Item Discussion Question 5-7 (LO. 2) Wes was a major league baseball pitcher who earned $10,000,000 for his 20 wins this year. Sam was also a major league baseball pitcher before a career-ending injury caused by a negligent driver. Sam sued the driver and collected $6,000,000 as compensation for lost estimated future income as a pitcher and $4,000,000 as punitive damages. a. Do the amounts that Wes and Sam receive have the same effect on their gross income? Yes b. Enter the amount, if any, to be included in the gross income for Wes and Sam. Wes: Sam: Check My Work 3 more Check My Work uses remaining Save and

Answer 1

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Answeu a) Do the amounts that Wes and san ceceive have w the same effect on their gruses Theory Ansbog : NO Note: W The amount gueceive by wes and som deos not have the same effect on these courses incom b) Enter the amount if any to be included in the peber . Intom fon Web and sam Wes: 10,000,000 Sam; 4,000,000 Note: It 31. not required tax pay tax from 6,000,000 because the payment for injuy hot farable. But the purúlive damage will lose Fasable Hoodoo as Income, but not fouth. lu Please upvote