During the current year, Harrison sustained a serious injury in the course of hi

Question

During the current year, Harrison sustained a serious injury in the course of his employment. As a result of the injury sustained, he received the following payments during the year:

Unemployment compensation                                          $5,000

Worker's compensation                                                     $6,500

Damages for physical personal injuries                            $5,000

Reimbursement from his employer's accident and

health plan for medical expenses paid by Harrison          $2,000

What is the amount to be included in Harrison's gross income for the current year?

A) $2,000

B) $5,000

C) $6,500

D) $11,500

Explanation / Answer

B.$5,000.

The amount to be included in the gross income is only Unemployment compensation, here the unemployment compensation is $5,000.

Worker's compensation is not regarded as income.

Rest of all the items are not included in the gross income computation.

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