Question: Leonard's home was damaged by a fire. He also had to be absent from work for several days to make his home habitable. Leonard's employer

Leonard's home was damaged by a fire. He also had to be absent from work for several days to make his home habitable. Leonard's employer paid Leonard his regular salary, $2,500, while he was absent from work. In Leonard's pay envelope was the following note from the employer: To help you in your time of need. Leonard's fellow employees also took up a collection and gave him $900. Leonard spent over $4,000 repairing the fire damage. Based on the above information, how much is Leonard required to include in his gross income?

Step by Step Solution

3.46 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Leonard must include 2500 in his gross income Because 2500 was received from his employer it ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1152-L-B-L-T-L(5496).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!