Buddy was injured by Matt in an automobile accident. The court awarded Buddy $30,000 in damages, but

Question:

Buddy was injured by Matt in an automobile accident. The court awarded Buddy $30,000 in damages, but Matt was only able to pay Buddy $12,000.

They both then considered the matter closed, under these terms. Compute the amount of gross income to Buddy, and to Matt, from this event.

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