Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer 35 and 36 please LO.2 Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted

Answer 35 and 36 pleaseimage text in transcribed

LO.2 Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted to repossess Physical damage to her arm caused by the collector Loss of income while her arm was healing Punitive damages 35. 3,300 15,000 6,000 80,000 a. What effect does the settlement have on Leigh's gross income? b. Assume that Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $25,000 included in Leigh's gross income? Explain. 36. LO.2 Determine the effect on gross income in each of the following cases ation case against her Eloise received $150,000 in settlement of a sex former employer a. b. Nell received $10,000 for damages to her personal reputation. She also received $40,000 in punitive damages Orange Corporation, an accrual basis taxpayer, received $50,000 from a lawsuit filed against its auditor who overcharged for services rendered in a previous year Beth received $10,000 in compensatory damages and $30,000 in punitive dam- ages in a lawsuit she filed against a tanning parlor for severe burns she received from using its tanning equipment. c. d. e. Joanne received compensatory damages of $75,000 and punitive damages of $300,000 from a cosmetic surgeon who botched her nose job

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions