Sally was an all-state soccer player during her junior and senior years in high school. She accepted an athletic scholarship from State University. The scholarship provided the following:

Tuition and fees............... $15,000

Housing and meals............. $7,500

Books and supplies............. $2,000

Determine the effect on gross income in each of the following cases:

a. Eloise received $150,000 in settlement of a sex discrimination case against her former employer.

b. Nell received $10,000 for damages to her personal reputation. She also received $40,000 in punitive damages.

c. Orange: Corporation, an accrual lusts taxpayer, received $50,000 front a lawsuit filed against its auditor who overcharged for services rendered in a previous year.

d. Beth received $10,000 in compensatory damages and $30,000 in punitive damages in a lawsuit she filed against a tanning parlor for severe bums she received from using its tanning equipment.

e. Joanne received compensatory damages of $75,000 and punitive damages of $300,000 from a cosmetic surgeon who botched her nose job.