Which of the Following Statements Is/are Correct? Danny Falls Off

question 68

Multiple Choice

Which of the following statements is/are correct? Danny falls off a ladder at work and is hospitalized for two weeks. He receives $650 from I. II. the state worker's compensation fund, his regular $1,800 salary, and $925 disability pay from his employer's health and accident insurance plan. Danny must recognize $2,725 of income from the payments. Donna's grandfather dies and leaves her City of Goldsboro bonds that are worth $57,000. The bonds have a face value of $50,000 and pay 5% annual interest. Donna must include the $2,500 of interest she receives in her gross income.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements are correct.
• D) Neither statement is correct.

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