Your client, Jerry, was involved in a serious automobile accident. The other driver was found legally liable. The insurance settlement provided $150,000 for personal injury, $15,000 for auto repair, $35,000 for lost wages and $100,000 for emotional distress. How much of the settlement would Jerry need to report as gross income (i.e., taxable income)?

Group of answer choices

$35,000

$150,000

$0

$200,000

$135,000

$300,000

Larry purchased an HO-5 policy with a face value of $230,000. The current replacement value of the home is $340,000. He suffers a loss of $32,000 from a kitchen fire. What will be the claim settlement, given the fact that Larry has a $500 deductible? (Calculate your answer using four decimal places)

Group of answer choices

$26,559

$25,600

$21,147

$32,000