Court Awards and Insurance Settlements. What amount, if any, must be included in gross income by the following taxpayers? a. Ann received $2,000 from her insurance company when her automobile which cost $3,000 was stolen. b. Barry received $3,000 from his brother. Barry had initiated a lawsuit against his brother in an effort to recover $3,000 he had previously loaned to him. The brother paid Barry back before the case was tried, and Barry dropped the lawsuit. c. Carry, an accountant, sued a client in order to collect her fee for doing tax work. Would Carrys accounting method make any difference? d. Dave has incurred $6,000 of medical expenses so far this year. He paid $400 of the expenses himself. His insurance company paid $4,000 of the expenses. The hospital is suing Dave and the insurance company for the balance, $1,600