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Peggy was offered a $ 2 5 , 0 0 0 severance package from her employer. She chose an alternative severance package under which the

Peggy was offered a $25,000 severance package from her employer. She chose an alternative severance package under which the employer would provide $22,000 in cash and agree to pay for certain outplacement services valued at $3,000. How much of the severance package must Peggy include in her income?
a. $25,000
b. $22,000
c. $3,000
d. $0

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