Derrick Was in an Automobile Accident While He Was Going

question 60

Multiple Choice

Derrick was in an automobile accident while he was going to work. The doctor advised him to stay home for eight months due to his physical injuries. The resulting lawsuit was settled and Derrick received the following amounts: How much of the settlement must Derrick include in ordinary income on his tax return?

• A)$0
• B)$80,000
• C)$95,000
• D)$175,000

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Definitions:

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Thoughts

Mental processes that involve the organization and processing of information, including beliefs, opinions, and plans.

Basic Approach

The fundamental strategy or method adopted in dealing with a problem or in understanding a concept.

Paradigm

A distinct set of concepts or thought patterns, including theories, research methods, postulates, and standards for what constitutes legitimate contributions to a field.