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E) $185,000. Question 55 Ray, a CPA, received a damage award in a defamation suit against a former client who claimed that he was incompetent
E) $185,000. Question 55 Ray, a CPA, received a damage award in a defamation suit against a former client who claimed that he was incompetent tax accountant. Ray received $200,000 for damages to his professional reputation, $500,000 for damages for lost income, and $100,000 in punitive damages, and $100,000 for emotional distress due to damage to his personal reputation. Ray must include in his gross income as a damage award: A) $100,000 B) $500,000. C) $600,000. D) $800,000
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