B was recently fired from her position as newscaster for NBS, a national television network.She sued the network for lost wages on the grounds that she was improperly fired.Ms.B won the case and was awarded $25,000.She must treat the $25,000 as taxable income.

Question

Quizplus · Accepted Answer

Any kind of compensation or award received as a result of employment, including wrongful termination lawsuits, is generally considered taxable income. Therefore, Ms. B must treat the $25,000 she received as taxable income.

B Was Recently Fired from Her Position as Newscaster for NBS