1) During this year, Jack was injured on his job. As a result of the injury, he received the following payments during this year:

Workers compensation received for injuries suffered at work: $2,600

Damages for physical injuries: $10,000

Back pay for two missed months of work: $9,000

What is the amount to be included in Jacks gross income for the current year?

2) Tom is the manager of a hotel. To be available in emergency situations, Toms employer requires that he live in one of the hotel rooms (without charge). The value of the room is $1,500 per month if occupied each night. The hotel is ordinarily 70% occupied. If Tom did not live there, he would live in an apartment that would rent for $900 per month. Toms inclusion is monthly gross income from living in the hotel room is: