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Sherwood Received Disability Income of $6,000 for 2012

Question 43

Multiple Choice

Sherwood received disability income of $6,000 for 2012. All premiums on the health and accident policy were paid by his employer and included in Sherwood's income. In addition, he received compensatory damages of $10,000 as a result of inadvertent poisoning at a local restaurant. He received no other income this year. How much income must Sherwood include on his 2012 tax return?


A) $16,000
B) $10,000
C) $6,000
D) $0

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