Acme published a story about Paul, and as a result Paul sued Acme for damage to his reputation, emotional distress, and punitive damages. Paul won an award of $40,000 for damages, $8,550 for emotional distress, and $62,500 for punitive damages. What amount must Paul include in his gross income

$40,000 for damages, $8,550 for emotional distress, and $62,500 for punitive damages will all be included in his gross income.

Explanation:

The tax laws provides that only payments on an account of an injury or sickness are nontaxable. Thus, damages taxpayers receive for emotional distress that is not associated with a physical injury are taxable as are punitive damages and damages to reputation. Thus all of the above are included in the gross income. $40,000 for damages, $8,550 for emotional distress, and $62,500 for punitive damages will all be included in his gross income.

answerinsider trading

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20