Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills $3,700, her emotional distress $6,000—she now fears peanut butter, and punitive damages $44,000. What amount must Pam include in her gross income?

Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills $3,700, her emotional distress $6,000—she now fears peanut butter, and punitive damages $44,000. What amount must Pam include in her gross income?

Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills $3,700, her emotional distress $6,000—she now fears peanut butter, and punitive damages $44,000. What amount must Pam include in her gross income?


A. $44,000

B. $50,000

C. $47,700

D. $9,700

E. $0—none of these benefits are included in gross income


Answer: A


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