What amounts are included in gross income for the following taxpayers? Explain your answers.
a. Janus sued Tiny Toys for personal injuries from swallowing a toy. Janus was paid $30,000 for medical costs and $250,000 for punitive damages.
b. Carl was injured in a car accident. Carl's insurance paid him $500 to reimburse his medical expenses and an additional $250 for the emotional distress Carl suffered as a result of the accident.
c. Ajax published a story about Pete and as a result Pete sued Ajax for damage to his reputation. Ajax lost in court and paid Pete an award of $20,000.
d. Bevis was laid off from his job last month. This month he drew $800 in unemployment benefits.