1. Pam earned a salary of $89,438 working as a CPA for a small firm. Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($4380), her emotional distress ($8700she now fears peanut butter), and punitive damages ($51,000). What amount must Pam include in her gross income? (Do not use commas or dollar signs.)

2. This year Ed celebrated his 25th year as an employee of Designer Jeans Company. He earned a salary of $150,000. Also, in recognition of his long and loyal service, the company awarded Ed a gold watch worth $238 and a $2540 cash bonus. What is Ed's gross income? (Do not use commas or dollar signs.)

3. Helen is a U.S. citizen and a CPA who moved to London, England, three years ago to work for a British company. This year, she spent the entire year in London and earned a salary of $141,600. Because she was required to live in London for her job, which has very high housing costs, Helen was paid a housing allowance equal to $36,153 for 2020 by the British company she worked for. She spent the entire housing allowance on a London apartment. What is Helens gross income for U.S. taxes? (See pp. 5-28 to 5-29) (Do not use commas or dollar signs.)