. An accident solely attributable to the criminal negligence of the driver of Reckless Bus Company resulted in the death of Ricardo's wife, physical injury to Ricardo that prevented him from working for a month and the total wreck of his brand new car which he bought for P400,000. In the action for damages filed by Ricardo against the Bus Company, the Court awarded the following: For Ricardo's injury consisting mainly in the loss of his right arm P30,000 For the loss of one month salary 25,000 For the death of his wife 25,000 For moral damages on account of such loss 100,000 For the loss of his car the value of which doubled because of inflation 800,000 How much was the taxable income of Ricardo? * 980,000 425,000 O 25,000 O zero
. An accident solely attributable to the criminal negligence of the driver of Reckless Bus Company resulted in the death of Ricardo's wife, physical injury to Ricardo that prevented him from working for a month and the total wreck of his brand new car which he bought for P400,000. In the action for damages filed by Ricardo against the Bus Company, the Court awarded the following: For Ricardo's injury consisting mainly in the loss of his right arm P30,000 For the loss of one month salary 25,000 For the death of his wife 25,000 For moral damages on account of such loss 100,000 For the loss of his car the value of which doubled because of inflation 800,000 How much was the taxable income of Ricardo? * 980,000 425,000 O 25,000 O zero
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:. An accident solely attributable to the criminal negligence of the driver of Reckless Bus Company
resulted in the death of Ricardo's wife, physical injury to Ricardo that prevented him from
working for a month and the total wreck of his brand new car which he bought for P400,000.
In the action for damages filed by Ricardo against the Bus Company, the Court awarded the
following:
For Ricardo's injury consisting mainly in the loss of his right arm
P30,000
For the loss of one month salary
25,000
For the death of his wife
25,000
For moral damages on account of such loss
100,000
For the loss of his car the value of which doubled because of inflation
800,000
How much was the taxable income of Ricardo? *
980,000
425,000
O 25,000
O zero
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