Acme Published a Story About Paul and as a Result

question 60

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 $20,000 for damages, $5,500 for emotional distress, and $50,000 for punitive damages. What amount must Paul include in his gross income?

• A) $5,500
• B) $20,000
• C) $50,000
• D) $70,000
• E) All of these benefits are included in gross income.

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Definitions:

Source Amnesia

The loss of memory regarding the specific context, including the place, time, or manner in which certain knowledge was gained, despite retaining the facts themselves.

Imagination Inflation

The increase in confidence that an imagined event actually occurred, due to the imagining of the event.

Misinformation Effect

A phenomenon where one's recall of episodic memories becomes less accurate due to post-event information.

Misinformation Effect

A phenomenon in which a person's recall of episodic memories becomes less accurate due to post-event information.