In $2024,$ Bob received a settlement from his lawsuit against the Terminus Company.$$ The recovery from the lawsuit included the following:$$

$$ Physical personal injury damages$$ $$1,000,000$

$$ Emotional Distress damages$10,000,000$

$$ Attorney$$s Fees$500,000$

$$ Punitive damages$5,000,000$

TOTAL AWARD$$ $$16,500,000$

Bob has spent $$650,000$ in attorney's fees on this lawsuit. His tax professional has advised Bob that the physical personal injury and emotional distress damages $($caused by the physical injury$)$ and attorney's fees are not includable in gross income. However, the punitive damages are included in gross income. His tax professional has also advised Bob that he can take a deduction for his unreimbursed attorney's fees, which are allocated entirely to the punitive damage award.

Bob has a realized gain of $ for $2024.$

Bob has a recognized gain of $ for $2024.$