Punitive Damage Awards Received Because of a Personal Injury

question 121

Multiple Choice

Punitive damage awards received because of a personal injury

• A)Are the same as loss-of-income damages.
• B)Are included in gross income regardless of the cause.
• C)Will be excluded from gross income if the award resulted from a physical personal injury.
• D)Will be excluded from gross income because punitive awards are meant to punish the offender for gross negligence.
• E)Are never taxable.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two variables fluctuate together, without necessarily implying causation.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to investigate its effect on the dependent variable.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable.

Self-Reports

Direct reports or accounts from individuals about their own feelings, behaviors, or attitudes, often used in research.