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Four years ago, Lyle Mercer was injured in a raliroad accident and sued the rallroad for damages. The jury required the raliroad to pay $567,500 compensation for his physical injuries, $225,000 for lost wages during his long recuperation, and $1,452,500 punitive damages. Assume the taxable year is 2022. Required: How much of the $2,245,000 settlement is included in Lyle's gross income? At the beginning of the year, Mt. Olsen paid $15 per share for 720 shares of Carmel common stock. He received cash distributions totaling $1,130. His form 1099 reported that $800 was a qualified dividend and $330 was a nontaxable distribution. Required: Compute his basis in his 720 shares at year-end. Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as acquisition debt, and both mortgages were incurred before December 15,2017 . This year, the mortgage holders provided the following information: Required: Assume the taxable year is 2022. Compute Mt, and Mrs. Kim's qualfied residence interest. Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount