Debra Kim sued her former boss and recovered the following
awards:
- Damage to her car the boss caused when Debra broke up with him $3,000
- Physical damage caused by her boss when he punched her $4,000
- Loss of income while her face was healing $9,000
- Punitive damages $20,000
1- What effect do these recoveries have on Debra’s gross income?
2- Assume that Debra also collected $60,000 of damages for libel arising out of her former boss’s written defamatory statement published on the company’s intranet. Is that amount included in Debra’s gross income?
- Damage to her car the boss caused when Debra broke up with him $3,000
- Physical damage caused by her boss when he punched her $4,000
- Loss of income while her face was healing $9,000
- Punitive damages $20,000
1- What effect do these recoveries have on Debra’s gross income?
2- Assume that Debra also collected $60,000 of damages for libel arising out of her former boss’s written defamatory statement published on the company’s intranet. Is that amount included in Debra’s gross income?
