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Effectus [21]
3 years ago
9

Theresa sued her former employer for age, race, and gender discrimination. She claimed $200,000 in damages for loss of income, $

300,000 for emotional harm, and $500,000 in punitive damages. She settled the claim for $700,000. As a result of the settlement, Theresa must include in gross income: $700,000 $500,000 $490,000
Business
1 answer:
NeX [460]3 years ago
8 0

Answer:

$700,000

Explanation:

Data provided in the question:

Amount claimed in damages for loss of income =  $200,000

Amount claimed for emotional harm =  $300,000

Amount claimed in punitive damages = $500,000

Amount for which the claim is settled = $700,000

Now,

here in the given question, none of the damages is caused due to any physical personal injury.

Hence,

None of the amount received will be excluded from gross income.

Therefore,

Theresa must include in gross income is $700,000

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Read 2 more answers
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