Pam Recently Was Sickened by Eating Spoiled Peanut Butter

question 17

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) Zero - None of these benefits is included in gross income.

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Definitions:

Reactions

Responses or behavior of an organism resulting from external or internal stimuli.

Major Neurotransmitter

A primary chemical messenger that transmits signals across neurons in the brain and body.

Norepinephrine

A neurotransmitter and hormone involved in the body's response to stress, increasing heart rate, blood pressure, and sugar levels in the brain.

Reinforcement

In psychology, any event that strengthens or increases the likelihood of a specific response or behavior by providing a consequence an individual finds rewarding.