While Staying at Vail Heights Resort,Jared Falls Over a Pool $$\begin{array} {l r } \text { Pain and Suffering } &\$ 105,000 \\\text { Loss of Wages } &16,200\end{array}$$

question 87

Multiple Choice

While staying at Vail Heights Resort,Jared falls over a pool cleaning vacuum hose left near the edge of the swimming pool,and suffers severe internal injuries.As part of the settlement,Jared receives the following amounts:

$$\begin{array} {l r } \text { Pain and Suffering } &\$ 105,000 \\\text { Loss of Wages } &16,200\end{array}$$

How much of the settlement must be included in Jared's Gross Income?

• A)$ - 0 -
• B)$ 16,200
• C)$ 60,600
• D)$105,000
• E)$121,200

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Definitions:

Title Transfer

The legal process of transferring ownership of a property or asset from one party to another.

Transaction

An exchange or transfer of goods, services, or funds between parties.

Unsecured Creditor

A creditor who has extended credit without obtaining any collateral, making them more vulnerable in the event of debtor default.

Secured Creditor

A creditor that may look to particular assets of the debtor to ensure payment of the debt.