Leigh sued an overzealous bill collector and received the following settlement:

Damage to her automobile that the collector attempted to repossess $$3,300$

Physical damage to her arm caused by the collector $$15,000$

Loss of income while her arm was healing $$6,000$

Punitive damages $$80,000$

Question Content Area

a$.$ Regarding Leigh's settlement, classify the following as either "Included in$"$ or "Excluded from" her gross income.

Included in$/$Excluded from

Income

$$ Damage to her automobile that the collector attempted to repossess

$$ Physical damage to her arm caused by the collector

$$ Loss of income while her arm was healing

$$ Punitive damages

Question Content Area

b$.$ Assume that Leigh also collected $$25,000$ of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $$25,000$ included in Leigh's gross income?