Pam Recently Was Sickened by Eating Spoiled Peanut Butter

question 32

Multiple Choice

Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($3,700) , her emotional distress ($6,000-she now fears peanut butter) , and punitive damages ($44,000) . What amount must Pam include in her gross income?

• A)$44,000
• B)$50,000
• C)$47,700
• D)$9,700
• E)$0-none of these benefits are included in gross income.

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Definitions:

Rent

Payment made by a tenant, often monthly, to a landlord in exchange for the use of land, a building, or other property.

Income Forms

Various ways through which individuals or entities can receive money, such as wages, salaries, dividends, interest, and rents.

Aggregate Stock

The total shares or equity held by shareholders in a corporation or the overall supply of goods or commodities available in a market.

Industrial Accident

An unexpected and unplanned event in an industrial setting resulting in injury, illness, or damage.