Olaf was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and $10,000 punitive damages. As a result of the award, the amount Olaf must include in gross income is:

a. $10,000.

b. $50,000.

c. $60,000.

d. $85,000.

e. None of these.

Question

Social Studies

Chloe Obrien

22 August, 00:54

Olaf was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and $10,000 punitive damages. As a result of the award, the amount Olaf must include in gross income is:

a. $10,000.

b. $50,000.

c. $60,000.

d. $85,000.

e. None of these.

+4

Answers (1)

Know the Answer?

Giovani Underwood · Answer 1

10,000

Explanation:

From the question, it can be deduced that $25,000 received for physical injury, and $60,000 received for his loss of income can be categorised as an expense. $10,000 received for punitive damages is the only form of earning. Hence the $10,000 gross income.

Olaf was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and $10,000 punitive damages. As a result of the award, the amount Olaf must include in gross income is:a. $10,000.b. $50,000.c. $60,000.d. $85,000.e. None of these.

Olaf was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and $10,000 punitive damages. As a result of the award, the amount Olaf must include in gross income is:

a. $10,000.

b. $50,000.

c. $60,000.

d. $85,000.

e. None of these.