contrad intotity coestimt theJake sued an unscrupulouscostsperson for derogatory remarksat amwhich he considered to haveemberonbesmirched his reputation. Thecourt awarded him an250,0050,00050,00050,000indemnity of P1,000,000inclusive of P200,000reimbursement for Attorney'sfees and P10O,000 exemplarydamages. Compute Henson'stotal return on capital.lem 4g 2020he BIRed thattimateas P650a. P1,000,000O b. P800,000O c. P700,000he 2020d and aO d. POmounter 31, 22 noints00An olion rogovod D200 0

Given information, Total indemnity awarded = P1,000,000 attorney's fees = P200,000 exemplary damages…

Answered: Jake sued an unscrupulous person for…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 35P

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In a certain civil case, plaintiff was awarded damages by the court in the sum of P20,000 representing profit he failed to realize on account of defendant’s failure to comply with his obligation to said plaintiff. Are those damages taxable against the plaintiff? a. No, because damages awarded are considered return of capital. b. No, because there is no sale transaction or exercise of profession in the awarding of damages. c. Yes, because the damages are not on account of injuries or sickness but for lost profit. d. Answer not given
LO.2 Leigh sued an overzealous bill collector and received the following settlement: a. What effect does the settlement have on Leighs gross income? b. Assume that Leigh also collected 25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leighs employer and other creditors. Is this 25,000 included in Leighs gross income? Explain.
Dennis owes Cart P1M. Xanabelle, without the knowledge or against the will of Dennis paid Cart P2M. Can Xanabelle get reimbursement from Dennis? P2M by way of reimbursement from Dennis to prevent unjust enrichment on the part of Dennis at the expense of Xanabelle. P1M only for that is the extent of benefit of Dennis. No reimbursement because the payment was not proper being without the knowledge or against the will of Dennis. P1M plus interest from the time of payment until reimbursement.
T embezzles $100,000 from his employer in Year 1. The embezzlement isdiscovered during the course of an audit in Year 2, at which time T repays the money infull.a. T realizes $100,000 of income in Year 1.b. T doesn’t realize any income in Year 1 because he had a legal obligation torepay the money at the time he took it.c. T realizes $100,000 of income when the embezzlement is discovered in Year 2,but only if he doesn’t repay it in that year.d. None of the above. While shopping at a flea market in Year 1, T bought a simple jewelry box for $20.When T got home with her new purchase, she discovered that the box had a hiddencompartment which contained an emerald ring. She then immediately had the ringappraised by an expert on emerald jewelry and learned that it was worth $5,000. T soldthe ring to her mother for $4,000 in Year 2.a. There are virtually no cases dealing with the recognition of income for noncashor non-bullion “treasure trove.”b. T would be required to recognize $4,980 of…
Huprey Co. is the defendant in the following legal claims. For each of the following claims, indicatewhether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1,250,000. It is probable that Huprey will lose the case.
Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted to repossess $3,300 Physical damage to her arm caused by the collector $15,000 Loss of income while her arm was healing $6,000 Punitive damages $80,000 Question Content Area a. Regarding Leigh's settlement, classify the following as either "Included in" or "Excluded from" her gross income. Included in/Excluded fromIncome • Damage to her automobile that the collector attempted to repossess • Physical damage to her arm caused by the collector • Loss of income while her arm was healing • Punitive damages Question Content Area b. Assume that Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $25,000 included in Leigh's gross income?
29. Brenda filed suit against her insurance company for deceptive trade practices. She seeks $5,000 in damages; $12,000 for mental anguish; and $10,000 for attorney fees. Her insurance company countersues for slander and seeks $10,000. If the court awards both parties what they are asking, how much would Brenda receive in most jurisdictions? a. $10,000 ob. $17,000 OC. $28,000 Od. $30,000
plz help
If BrainTrain and Natasha had executed a written contract which contained a liquidated damages clause for $200 in the event that BrainTrain breached, and assuming BrainTrain admits to a breach, would that clause be upheld in court? Select Correct Answer a) Yes, it is reasonable and fair. b) No, in this case, actual damages can be easily determined. c) No, the amount is too low for the type of harm she suffered.
AXE Co. is the defendant in a lawsuit. AXE reasonably estimates that this pending lawsuit will result in damages of $99,000. It is probably that AXE will lose the case. What should AXE do? Group of answer choices a. Record a liability b. Disclose in notes c. Have no disclosure
86. T surreptitiously stole the specific necklace of S. Afterwards, T conducted a public auction then sold and delivered the said necklace to B at a price of P10,000. B acquired the said necklace in such public auction. Which of the following statements is correct? Group of answer choices a. S can legally recover the necklace from B even without reimbursing B. b. S may legally recover the necklace from B but he must reimburse B of the amount of P10,000. c. S can never legally recover the necklace from B because the latter is a purchaser in good faith and for value. d. S cannot legally recover the necklace from B even if he reimburses B of the amount of P10,000.
27) Suzan’s office building was damaged by a fire caused by a careless tenant. After paying Suzan for her loss, the insurance company sued the tenant to recover its loss. This suit is based on the principle of

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