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5. Lebron was in an automobile accident while he was going to work. The doctor advised him to stay home for eight months due to

5. Lebron was in an automobile accident while he was going to work. The doctor advised him to stay home for eight months due to his physical injuries. The resulting lawsuit was settled and Lebron received the following amounts:

Compensatory damages for physical injury

$80,000

Punitive damages

95,000

How much of the settlement must Lebron include in ordinary income on his tax return?

A) $0

B) $80,000

C) $95,000

D) $175,000

Rabia's employer pays $10,000 in tuition this year for Rabia to attend a graduate engineering program. How much of the employer-provided tuition is taxable to Rabia?

A) $0

B) $4,750

C) $5,250

D) $10,000

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