In 2012, Theresa Was in an Automobile Accident and Suffered

question 75

True/False

In 2012, Theresa was in an automobile accident and suffered physical injuries.The accident was caused by Ramon's negligence.In 2013, Theresa collected from his insurance company.She received $15,000 for loss of income, $25,000 punitive damages, and $8,000 for medical expenses which she had deducted on her 2012 tax return (the amount in excess of 7.5% of adjusted gross income).As a result of the above, Theresa's 2013 gross income is increased by $33,000.

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Definitions:

Ambiguous

Describes statements or terms that are unclear or have multiple interpretations, often leading to confusion or misunderstanding.

Buyer

An individual or entity that purchases goods or services for personal use, resale, or production purposes.

Inspect

To examine something carefully in order to assess its condition or to discover its existence.

Defective

Having a fault or flaw that reduces the item's intended function or value, often leading to unsatisfactory performance.