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b . Carl was injured in a car accident. Carl's insurance paid him $ 5 2 , 5 0 0 to reimburse his medical expenses

.

Carl was injured in a car accident. Carl's insurance paid him $

52, 500

to reimburse his medical expenses and an additional $

26, 250

for the emotional distress Carl suffered as a result of the accident.

Amount included in Gross Income

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