Based on the following 20X1 events, how much should Rachel include in income on her federal income tax return?

	Jury awarded punitive damages	$10,000
	Kickbacks on sale of goods (not treated as a reduction elsewhere)	5,000
	Money borrowed from a bank	8,000
	Increase in the value of an asset	1,000

Select one:

a.

$10,000

b.

$15,000

c.

$16,000

d.

$24,000