In 2017, Theresa Was in an Automobile Accident and Suffered

question 5

True/False

In 2017, Theresa was in an automobile accident and suffered physical injuries. The accident was caused by Ramon's negligence. In 2018, Theresa collected from his insurance company. She received $15,000 for loss of income, $10,000 for pain and suffering, $50,000 for punitive damages, and $6,000 for medical expenses which she had deducted on her 2017 tax return (the amount in excess of 10% of adjusted gross income). As a result of the above, Theresa's 2018 gross income is increased by $56,000.

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Definitions:

Thrifty

Being careful with money and resources by avoiding waste, spending wisely, and seeking good value.

Miserly

A person who is extremely reluctant to spend money; excessively frugal or stingy.

Individuals

Persons considered separately from other members or units in a group or category.

Look Alike

Generally refers to two or more entities that are visually similar to each other; often used in the context of people, products, or phenomena that share appearances.