Linda Was Injured in an Automobile Accident Caused by Another

question 98

Multiple Choice

Linda was injured in an automobile accident caused by another driver.Her son,Matthew,was in the automobile but not physically injured.The other driver's insurance company was required by a court to pay Linda $75,000 to cover medical bills relating to her injuries,$30,000 to compensate her for emotional distress attributable to the injuries and $40,000 of punitive damages.Matthew was paid $15,000 to compensate him for emotional distress attributable to his witnessing his mother's injuries.What is the amount taxable to Linda?

• A)$30,000
• B)$40,000
• C)$105,000
• D)$145,000

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Definitions:

Swing-To Gait

A mode of walking or gait where both crutches or walking aids are advanced and then the legs swing to meet them, commonly used by individuals with lower limb disabilities.

Crutches

Assistive devices used to transfer weight from the legs to the upper body during movement, often used after injury or surgery.

Exercise

Physical activities that are planned, structured, and repetitive for the purpose of conditioning any part of the body, improving health, and maintaining fitness.

Strength

The quality or state of being physically strong.