Business
Business, 19.07.2021 17:30, aliviafrancois2000

Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted to repossess: $3,300
Physical damage to her arm caused by the collector: $15,000
Loss of income while her arm was healing: $6,000
Punitive damages 80,000

a. What effect does the settlement have on Leigh's Gross income?
b. Assume that Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $25,000 included in Leigh's gross inome? Explain.

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Answers: 3

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Leigh sued an overzealous bill collector and received the following settlement: Damage to her autom...

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