Question

Andrea sued her former employer for a back injury she suffered on the job in 2019. As a result of the injury, she was partially disabled. In 2020, she received $240,000 for her boss of future income, $160,000 in punitive damages because of the employer's flagrant disregard for the employee's safety, and $15,000 for medical expenses. The medical expenses were deducted on her 2019 return, reducing her taxable income by $12,000. Andrea's 2020 gross income from the above is:

Answer 1

$172,000

Step-by-step explanation:

Calculation for what Andrea's 2020 gross income from the above is:

Using this formula

2020 gross income=Punitive damages+ Medical expenses deducted

2020 gross income=$160,000+$12,000

2020 gross income=$172,000

Therefore Andrea's 2020 gross income from the above is: $172,000