Identify whether the following statements are true or false. Punitive damages are taxable unless they are awarded for physical injuries. Katie, a self-employed CPA, an accident & disability insurance policy. As the result of an auto accident, Katie was unable to work and received $3,000 of disability benefits per month for seven months. The benefits were based on her estimated monthly income and should be reported as gross income. John, an employee of a manufacturing company, suffered a heart attack and was unable to work for six months. He received $1, 500 per month of disability benefits as a result of an employer-provided group policy. The benefits are includible in John's gross income. The value of health, accident, and disability insurance premiums paid by an employer are generally not included in an employee's gross income. Mattie has group term life insurance coverage of $120,000 provided by her employer on a nondiscriminatory basis. She must include premiums for $120,000 of coverage in gross income, determined by using IRS tables. Martina, who has been employed by the Smythe Corporation for ten years, receives a $400 watch as a length of service award in a meaningful presentation. The fair value of the watch is taxable. Ming, who has been employed by the Frostine Corporation for five years, receives a $400 Amazon.com gift card for his years of hard work. The employee service award is taxable