Early in the year, Marlon was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year:

Reimbursement of medical expenses Marlon paid by a medical insurance policy he purchased $10,000 Damage settlement to replace his lost salary 15,000

What is the amount that Marlon must include in gross income for the current year? a. $25,000. b. $15,000. c. $12,500.

d. $10,000. e. $0.

14. Martha invested $6,000 in a qualified tuition program for the benefit of her son. Four years later her son withdrew $8,000, the entire balance in the program, to pay his college tuition.

1. Martha is not required to include the $2,000 ($8,000 $6,000) in her gross income when the funds are used to

   pay the tuition.

2. Marthas son must include the $2,000 ($8,000 $6,000) in his gross income when the funds are used to pay the tuition.

3. Martha must include $8,000 in her gross income.

4. Marthas son must include $8,000 in his gross income.

5. None of these.