McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 70

What amounts are included in gross income for the following taxpayers? Explain your answers.a.Janus sued Tiny Toys for personal injuries from swallowing a toy.Janus was paid $30,000 for medical costs and $250,000 for punitive damages.b.Carl was injured in a car accident.Carl's insurance paid him $500 to reimburse his medical expenses and an additional $250 for the emotional distress Carl suffered as a result of the accident.c.Ajax published a story about Pete and as a result Pete sued Ajax for damage to his reputation.Ajax lost in court and paid Pete an award of $20,000.d.Bevis was laid off from his job last month.This month he drew $800 in unemployment benefits.