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Early in the Year, Marlon Was in an Automobile Accident

Question 42

Multiple Choice

Early in the year, Marlon was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year:  Reimbursement of medical expenses Marlon paid by a medicalinsurance policy he purchased $10,000Damage settlement to replace his lost salary 15,000\begin{array} { l } \text { Reimbursement of medical expenses Marlon paid by a medical}\\ \text {insurance policy he purchased }&\$10,000\\ \text {Damage settlement to replace his lost salary }&15,000\\\end{array}
What is the amount that Marlon must include in gross income for the current year?


A) $25,000.
B) $15,000.
C) $12,500.
D) $10,000.
E) $0.

Correct Answer:

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