During the current year, Harrison was terminated from his job. After much litiga

Question

During the current year, Harrison was terminated from his job. After much litigation, Harrison won an age discrimination case against his employer. In conjunction with the suit, he received the following payments during the year:

Unemployment compensation                                                  $5,000      

Damages for personal injuries                                                  $25,000

Punitive damages for the age discrimination                            $75,000

Refund of court costs from attorney                                         $2,000        

What is the amount to be included in Harrison's gross income for the current year?

A) $30,000

B) $80,000

C) $100,000

D) $105,000

Explanation / Answer

Unemployment compensation 5000 Damages for personal injuries    25000 Punitive damages for the age discrimination 75000 Amount to be included in Harrison's gross income 105000 Option D is correct

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