$11)$While driving, Max is involved in a car crash. While he is not injured, his car is destroyed. As

part of the settlement with the counterparty, Max receives $$15,000$ for emotional distress, $$1,000$

for being unable to go to work for a week, and $$12,000$ for punitive damages against the other

driver, who was drinking. What must Max include in his gross income?

$12)$Later$,$ Max is walking home and falls through an open manhole cover and is injured. He sues the

city of San Antonio and the city settles with him. As part of the settlement, Max received $$5,000$

for his unreimbursed medical expenses, $$2,000$ for being unable to go to work while recovering,

and $$12,000$ in punitive damages for the city's negligence. What must Max include in his gross

income?