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Smith sued an overzealous bill collector and received the following settlement: Damage to his car that the collector attempted to repossess: $ 4 , 4
Smith sued an overzealous bill collector and received the following settlement:
Damage to his car that the collector attempted to repossess: $
Physical damage to his leg caused by the collector: $
Loss of income while his leg was healing: $
Punitive damages: $
a What effect does the settlement have on Smiths gross income?
b Assume that Smith also collected $ of damages for slander to his personal reputation caused by the bill collector misrepresenting the facts to Smiths employer and other creditors. Is this $ included in Smiths gross income? Explain.
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