Derrick Was in an Automobile Accident While He Was Going

question 571

Multiple Choice

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

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