Early in the year marcus was in an automobile accident


Question - Early in the year, Marcus was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year:

Reimbursement of medical expenses paid by a medical insurance policy Marcus purchased - $7,000

Damage settlement to replace his lost salary - $6,000

What is the amount that Marcus must include in gross income for the current year?

a) $20,000

b) $13,000

c) $7,000

d) $6,000

e) $0

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Accounting Basics: Early in the year marcus was in an automobile accident
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