Joseph, age $19,$ is a full$-$time student at City University. During $2023,$ he received the following payments:

State scholarship $-$ tuition

State scholarship $-$ room and board

Loan from college financial aid office

Ron was walking to class and hit by a drunk driver. He broke his leg and received $$50,000$ in compensatory damages for his injury.

Ron also received $$10,000$ for punitive damages

$$6,000$

$3,000$

$2,000$

$50,000$

$10,000$

What is taxpayer's adjusted gross income for $2023?$

a$.$ $$13,000.$

b$.$ $$21,000.$

c$.$ $$61,000.$

d$.$ $$71,000.$

e$.$ None of the above.

Select the choice which identifies the correct answer:

a$.$ An accrual basis taxpayer recognizes income when it is received.

b$.$ A cash basis taxpayer recognizes income when it is earned.

c$.$ Bartering is not considered an income recognition event.

d$.$ The constructive receipt doctrine prevents the cash basis taxpayers from deferring recognition of income by intentionally avoiding the receipt of the income in the current tax year.