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  3. problem 5-36 (lo. 2) classify each of the followin

Problem 5-36 (LO. 2) Classify each of the following cases as "Included in" or "Excluded...

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Accounting

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Problem 5-36 (LO. 2) Classify each of the following cases as "Included in" or "Excluded from" gross income. Included in/Excluded from Gross Income a. Eloise received $150,000 in the settlement of a sex discrimination case against her former employer. b. Nell received $10,000 for damages to her personal reputation. Nell also received $40,000 in punitive damages. c. d. Orange Corporation, an accrual-basis taxpayer, received $50,000 from a lawsuit it filed against its auditor, who overcharged for services rendered in a previous year. Beth received $10,000 in compensatory damages in a lawsuit she filed against a tanning parlor for severe burns she received from using the parlor's tanning equipment. Beth also received $30,000 in punitive damages in the lawsuit against the tanning parlor. Joanne received compensatory damages of $75,000 from a cosmetic surgeon who botched her nose job. Joanne also received $300,000 in punitive damages from the cosmetic surgeon who botched her nose job. e

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