Angela hits Becky with her car, causing Becky to sustain several injuries. Becky then sues Angela and
Question:
Angela hits Becky with her car, causing Becky to sustain several injuries. Becky then sues Angela and the Court awards the following damages to Becky:
$5,000 to compensate for medical expenses previously incurred
$10,000 to compensate for lost wages for time missed from work
$3,000 for physical pain and suffering
$2,000 for emotional distress
$1,000 in punitive damages for Angela's reckless conduct
Becky did not previously deduct any medical expenses related to the accident.
Which of the above amounts will be included in Becky's gross income?
$5,000 to compensate for medical expenses previously incurred
$10,000 to compensate for lost wages for time missed from work
$3,000 for physical pain and suffering
$2,000 for emotional distress
$1,000 in punitive damages for Angela's reckless conduct
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara