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:

Narcissism

A psychological condition characterized by self-preoccupation, lack of empathy, and unconscious deficits in self-esteem.

Self-Serving Bias

A common tendency for individuals to attribute their successes to internal factors and their failures to external factors.

External Locus

The belief that one's outcomes in life are controlled by external forces or fate rather than one's own efforts.

Erroneously Thinking

The process of making mistakes in reasoning or understanding; incorrect or faulty thinking.