Sherwood received disability income of $6,000 for 2018. All premiums on the health and accident...

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Accounting

Sherwood received disability income of $6,000 for 2018. All premiums on the health and accident policy were paid by his employer and included in Sherwood's income. In addition, he received compensatory damages of $10,000 as a result of inadvertent poisoning at a local restaurant. He received no other income this year. How much income must Sherwood include on his 2018 tax return?

$16,000
$10,000
$6,000
$0

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