Acme Published a Story About Paul, and as a Result

question 80

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 these benefits are included in gross income.

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Definitions:

Crédit Mobilier

A scandal of the 1870s involving high-ranking members of the U.S. Congress and the Crédit Mobilier of America company, linked to construction fraud during the building of the Union Pacific Railroad.

Whiskey Ring

A scandal in the 1870s involving government officials and distillers in the United States who conspired to defraud the government of taxes on whiskey.

President Grant

Ulysses S. Grant, the 18th President of the United States, serving from 1869 to 1877, known for his leadership during the Civil War and efforts during Reconstruction.

Hollywood Cowboy

A cinematic archetype representing the idealized image of the rugged, independent, and moral cowboy figure primarily in American Western films.