Question

Jack received a court award in a civil libel and slander suit against National Gossip. He received $120,000 for damages to his professional reputation, $100,000 for damages to his personal reputation, and $50,000 in punitive damages. Jack must include in his gross income as a damage award:

A. $0.
B. $100,000.
C. $120,000.
D. $270,000.
E. None of these.

Answer 1

Jack must include in his gross income as a damage award the amounts he received for damages to his professional and personal reputation, as well as the punitive damages.

Step-by-step explanation:

In this case, Jack must include in his gross income as a damage award the amounts he received for damages to his professional and personal reputation, as well as the punitive damages. Therefore, the correct answer is C. $120,000, which represents the damages to his professional reputation.