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

Question

2 years ago

5

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:

Business

1 answer:

Nimfa-mama [501] · Answer 1 · 2022-08-27T13:52:31+03:00

Answer:

$700,000

Explanation:

Although Theresa claimed $200,000 for damages, $300,000 for emotional harms and $500,000 in punitive damages, the final settlement was made at $700,000.

Hence, the gross income must include the amount which was actually used and received in settlement and this is $ 700,000.

Hope this Clear things up

Good Luck.