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Susan was injured in an automobile accident. She has threatened to file a suit against the other party involved in the accident and has proposed
Susan was injured in an automobile accident. She has threatened to file a suit against the other party involved in the accident and has proposed the following settlement: Damages for 25% loss of the use of her right arm $200,000 Medical expenses 30,000 Loss of wages 10,000 Punitive damages 100,000 $340,000 Instead, the company offers to pay her $290,000 for damages to her arm and $30,000 medical expenses, and nothing for lost wages or punitive damages. Assuming Barbara is in the 35% marginal tax bracket what is your advice to Barbara? Explain your advice
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