Acme Published a Story About Paul, and as a Result

question 80

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:

NHTSA

The National Highway Traffic Safety Administration, a U.S. federal government agency responsible for enforcing vehicle performance standards and promoting road safety.

Motor Vehicle Safety Standards

Motor Vehicle Safety Standards are regulations established to ensure the safety and reliability of motor vehicles, protecting passengers, drivers, and pedestrians.

Warranty

A guarantee provided by a seller regarding the quality, performance, or condition of a product.

Gramm-Leach-Bliley Financial Modernization Act

A law enacted in 1999 that aims to regulate the collection, disclosure, and protection of consumers' personal financial information by financial institutions.