A) Nathaniel was severely injured while at work, he lost a portion of right arm. Nathaniel received compensatory and punitive damages for his loss. He received $20,000 in compensatory damages for his medical expenses, $5,000,000 for lost income, $400,000 for pain and suffering, and $800,000 in punitive damages. How much of the damages should Nathaniel include in gross income?

B) Tamara and Shane entered into a divorce decree on May 2, 2019. Shane is required to pay his former spouse $3,000 a month. Tamara has custody of their only child, Nicole. When Nicole turns 18 on August 31, 2019, the payments change to $2,500 per month. The remaining $2,500 is to be paid to Tamara as long as she lives or until she remarries. How much of the payments from Shane should be included in Tamaras 2019 gross income.