Olaf Was Injured in an Automobile Accident and Received $25,000

question 40

Multiple Choice

Olaf was injured in an automobile accident and received $25,000 for his physical injury, $10,000 for his loss of income, and $50,000 punitive damages.As a result of the award, the amount Olaf must include in gross income is:

• A)$10,000.
• B)$50,000.
• C)$60,000.
• D)$85,000.
• E)None of the above.

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Definitions:

Typed Agreement

A formal contract that has been created and recorded in written form, usually typewritten, to outline specific terms and conditions between parties.

Writing Requirement

The legal principle that certain contracts or agreements must be recorded in written form to be legally enforceable.

Statute of Frauds

A rule of law that mandates specific kinds of agreements must be documented and signed by the involved parties to be legally binding.

Signed

A document or agreement that has been autographed by one or more individuals, indicating acceptance or confirmation of its contents.