Acme Published a Story About Paul and as a Result

question 6

Multiple Choice

Acme published a story about Paul and as a result Paul sued Acme for damage to his reputation, emotional distress, and punitive damages. Paul won an award of $20,000 for damages, $5,500 for emotional distress, and $50,000 for punitive damages. What amount must Paul include in his gross income?

• A)$5,500
• B)$20,000
• C)$50,000
• D)$70,000
• E)All of the above benefits are included in gross income

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Definitions:

Lacrimal

Pertaining to tears and the glands that produce tears, which play a crucial role in eye health and function.

Ethmoid

A spongy, cube-shaped bone between the eyes and at the roof of the nose, crucial for supporting the nasal cavity and forming part of the eye sockets.

Femur

The longest and strongest bone in the human body, also known as the thigh bone, it extends from the hip to the knee.

Fibula

The fibula is the slender and long bone located on the lateral side of the tibia in the lower leg, playing a key role in stabilizing the ankle and supporting muscles of the lower leg.