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Jim was injured in an accident and his surgeon botched the medical procedure. Jim recovered $ 5 , 0 0 0 from the doctor for

Jim was injured in an accident and his surgeon botched the medical procedure. Jim

recovered $

5, 000

from the doctor for pain and suffering and $

2, 000

for emotional distress.

Determine the taxability of these payments and briefly explain to Jim the apparent rationale

for including or excluding these payments from gross income.

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