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Nitella [24]
3 years ago
6

Olaf was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and $10

,000 punitive damages. As a result of the award, the amount Olaf must include in gross income is:
a. $10,000.
b. $50,000.
c. $60,000.
d. $85,000.
e. None of these.
Social Studies
1 answer:
oee [108]3 years ago
8 0

Answer:

10,000

Explanation:

From the question, it can be deduced that $25,000 received for physical injury, and $60,000 received for his loss of income can be categorised as an expense. $10,000 received for punitive damages is the only form of earning. Hence the $10,000 gross income.

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