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4-42 Determine which of the following payments for sickness and injury must be included in the taxpayer's gross income. a. Pat was injured in an

4-42 Determine which of the following payments for sickness and injury must be included in the taxpayer's gross income. a. Pat was injured in an automobile accident. The other driver's insurance company paid him $2,000 to cover medical expemses and a compensatory amount of $4,000 for pain and suffering. b. A newspaper article stated that Quincy had been convicted of tax evasion. Quincy, in fact, had never been accused of tax evasion. He sued and won a compensatory settlement of $4,000 from the newspaper. c. Rob, who pays the cost of a commercial disability income policy, fell and injured him back. He was unable to work for six months. The insurance company paid him $1,800 per month during the time he was unable to work. d. Steve fell and injured his knee. He was unable to work for four months. His employer-financed disability income policy paid Steve $1,600 per month during the time he was unable to work. e. Ted suffered a stroke. He was unable to work for five months. His employer continued to pay Ted his salary of $1,700 per month during the time he was unable to work

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