Early in the Year,Marion Was in an Automobile Accident During

question 30

Multiple Choice

Early in the year,Marion was in an automobile accident during the course of his employment.As a result of the physical injuries he sustained,he received the following payments during the year:
Reimbursement of medical expenses Marion paid by a medical insurance policy he purchased
$10,000
Damage settlement to replace his lost salary
15,000
​
What is the amount that Marion must include in gross income for the current year?

• A)$25,000.
• B)$15,000.
• C)$12,500.
• D)$10,000.
• E)$0.

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Definitions:

Repression

A psychological defense mechanism where distressing thoughts, memories, or impulses are unconsciously pushed out of conscious awareness.

Semantic Memory

A type of long-term memory involving the storage of general knowledge, facts, concepts, and meanings not tied to specific experiences.

Concepts

Mental representations or understandings of categories or classifications of objects, events, or people, based on shared properties or characteristics.

Events

Occurrences or happenings that take place in a specific time and place, often noteworthy.