Early in the Year, Marlon Was in an Automobile Accident $\begin{array}{lr}\text { insurance policy he purchased } & \$ 10,000 \\\text { Damage settlement to replace his lost salary } & 15,000\end{array}$

question 79

Multiple Choice

Early in the year, Marlon was in an automobile accident during the course of his employment.As a result of the physical injuries he sustained, he received the following payments during the year: Reimbursement of medical expenses Marlon paid by a medical $\begin{array}{lr}\text { insurance policy he purchased } & \$ 10,000 \\\text { Damage settlement to replace his lost salary } & 15,000\end{array}$ What is the amount that Marlon must include in gross income for the current year?

• A)$25,000.
• B)$15,000.
• C)$12,500.
• D)$10,000.
• E)$0.

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Definitions:

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the ratio of value-added time to the total cycle time.

Non-value-added Time

Time that does not contribute directly to the final value or quality of the product or service, often seen as a target for reduction in process improvement efforts.

Throughput Time

The elapsed time from when production is started until finished goods are shipped.

Residual Income

The net operating income that an investment center earns above the minimum required return on its operating assets.