Ray received $$500$ under a workers' compensation plan for physical injuries sustained in the course of his employment.

$2.$ Under a jury award for damages to Ray's personal reputation for libel, $12$ payments of $$420$ each were received. The total award was $$12,000$ for his personal reputation and $$12,000$ as punitive damages, payable in $60$ equal monthly installments. Each monthly payment of $$420$ reflects an interest component.

$3.$ Pam borrowed $$5,000$ from Local Bank to purchase a piano. She paid $$300$ of interest on the loan. Principal of $$3,750$ was still outstanding at year$-$end.

$4.$ Pam received a pro rata stock dividend of $100$ shares of the stock of Grubbs Corp. She requested a dividend of $$5,000$ cash instead $($the fair market value of the stock dividend$)$ but was told that Grubbs Corp. does not give that option to shareholders.

$5.$ Ray, as beneficiary of the life insurance policy of his aunt who died $2$ years ago, received the third $$8,000$ installment on a $$100,000$ life insurance policy, payable in annual installments of $$8,000$ over a $15-$year period.

$6.$ Ray was notified on December $27,2024,$ that the principal amount of $$1,000$ due on a note secured by a computer he purchased in $2021$ had been reduced to $$700.$ The creditor had reduced the amount as to all accounts secured by computers more than a certain number of years old to discourage "walking away" from debt greater in amount than the cost of new updated equipment.

$7.$ Seth, a tenant of Ray and Pam, having paid $2024$ rent of $$8,600$ in December $2023,$ moved out in December $2024,$ leaving $$3,300$ of improvements to the leasehold premises.