Acme Published a Story About Paul, and as a Result

question 132

Multiple Choice

Acme published a story about Paul, and as a result Paul sued Acme for damage to his reputation, emotional distress, and punitive damages. Paul won an award of $25,750 for damages, $9,550 for emotional distress, and $68,250 for punitive damages. What amount must Paul include in his gross income?

• A)$9,550
• B)$25,750
• C)$68,250
• D)$94,000
• E)All of these benefits are included in gross income

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Definitions:

Financial Reporting

The process of disclosing financial information and performance results to management, investors, and the public.