Q1. Devon was involved in a vehicle accident. Devon sued Dianne, the other driver. Dianne was found to be 100% at fault. Dianne paid Devon the following amounts pursuant to the lawsuit: $30,000 for physical injuries that Devon sustained in the accident. $40,000 for medical care for Devon $60,000 for punitive damages $30,000 to replace Devons car. Devons basis in her car at the time of the accident was $30,000 How much of the above does Devon include in her taxable income?

a. $0

b. $30,000

c. $60,000

d. $130,000

Q2. In 20X1, Juan purchased medical insurance for himself, his wife Juanita, and his son Miguel, through his employer. The medical policy costed $15,000. Juan paid $1,000 toward the medical insurance premium, and his employer paid $14,000 toward the medical insurance premium. How much of the $14,000 that was paid by Juans employer is included in Juans taxable income for 20X1?

a. $0

b. $1,000

c. $14,000

d. $15,000

Q3. In 2021, Pauls primary residence was destroyed in a fire, in a federally declared disaster area. In 2021, after his house was destroyed, Paul had to live in a motel for 7 months. In 2021, Pauls insurance company paid Paul $200,000 to cover the cost of the motel and his other living expenses. How much of the $200,000 that was received by Paul is included in Paulss taxable income for 2021?

a. $0

b. $50,000

c. $100,000

d. $200,000

Q4. Eva's employer provided child care services at the worksite to the employees. In 2021, Eva took advantage of the benefit, and received child care services valued at $12,000 from her employer. Eva paid $0 for those child care services. In 2021, how much of the $12,000 benefit does Eva include in her Federal taxable income?

a. $0

b. $1,500

c. $10,500

d. $12,000