#39: Mason Corporation sues Republic Company for patent infringement, and is awarded $6,000,000 of damages and an additional $12,000,000 of punitive damages. How much, if any, of these payments is taxable to Mason? Should Republic Company be able to deduct any of these amounts? Explain.

#42: The IRS can force a taxpayer to change from one acceptable method of accounting to another acceptable method of accounting if the taxpayers method does not produce an identity of results with the IRS method. Do you agree? Explain.