During the Year, Ted Knight Received Worker's Compensation Payments Totaling

Multiple Choice

During the year, Ted Knight received worker's compensation payments totaling $10,000 as a result of an injury he suffered at work.His only other source of income for the year was his wages of $25,000.Which one of the following represents Ted's Net and Taxable Incomes for the year?

A) Net Income $25,000, Taxable Income $25,000.
B) Net Income $30,000, Taxable Income $30,000.
C) Net Income $35,000, Taxable Income $25,000.
D) Net Income $35,000, Taxable Income $35,000.
TIF PROBLEM FOUR - 4
Tax Payable For Individuals - Exam Exercises