Amy sued Paul who caused the car accident. Amy received the following settlement: Physical damage to...
Amy sued Paul who caused the car accident. Amy received the following settlement:
|
Physical damage to her arms caused by the accident |
$5,000 |
|
Loss of income while her physical injuries were healing |
$3,000 |
|
Medical expenses for treatment of injury |
$7,000 |
|
Punitive Damages |
$10,000 |
What is Amy’s gross income?
Homework Answers
Ans: The Punitive damages i.e. $10,000 are to be included in amy's gross income.
amounts $3,000 and $5,000 can be be excluded as arising out of the physical personal injury, also the medical expenses i.e. $7,000 that have been incurred due to medical expenses for treatment of injury.
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Amy sued Paul who caused the car accident. Amy received the
following settlement:
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