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Sharisma Suffered a Serious Stroke and Was Admitted to a Nursing

question 53

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Sharisma suffered a serious stroke and was admitted to a nursing home for 140 days.Nursing home charges,including physician fees and other related expenses were $63,000.Under Sharisma's long-term care insurance contract,she received reimbursements of $56,000.How much of the $56,000 reimbursement must be included in Sharisma's gross income in 2017?


Definitions:

Revenue Generated

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Deadweight Loss

A decline in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of the product, such as alcohol, tobacco, and fuel.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount available, leading to equilibrium in the market.

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