LO.2 Leigh sued an overzealous bill collector and received the following settlement: 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 35. $ 3,300 15,000 6,000 80,000 What effect does the settlement have on Leigh's gross income? 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? Explain. a. b. 40. LO.2 Belinda spent the last 60 days of 2017 in a nursing home. The cost of the ser- vices provided to her was $18,000 ($300 per day). Medicare paid $8,500 to- ward the cost of her stay. Belinda also received $5,500 of benefits under a long-term care insurance policy she purchased. What is the effect on Belinda's gross income