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? Oa. $10,000 ob. $17,000 OC. $28,000 Od. $30,000
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- Ashley received a civil judgement against Sales Associate Betsy. The judge awarded Ashley $10,000 in compensatory damages and $8,000 in punitive damages. Court costs amounted to $3,000. Because Betsy had insufficient assets to satisfy the judgment, Ashley made a claim to the Recovery Fund, which was accepted. What is the maximum amount that the Recovery Fund reimburse Ashley? 10,000 8000 21000 18000Patricia is being sued for $3 million as a result of an automobile accident where she was deemed 50 percent at-fault. At the time of the loss, Patricia had an automobile policy with Globex Insurance Company and helf a liability limit of $2 million. She also had an Umbrella Policy with Eiffel Insurance Company with a $2 million Limit. If the claimant is awarded $3 million, how is the claim payment structured? A) Globex Insurance covers $2 million and Eiffel Insurance covers the remaining $1 million. B) Clobex Insurance covers $1 million and Eiffel Insurance covers the remaining $2 million. C) Globex Insurance covers $2 million and Patricia pays the remaining $1 million. D) Globex Insurance covers $1.5 million as Patricia was deemed 50 preent at fault.Virginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $5,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss? a.$4,000 b.$5,000 c.$14,000 d.$10,000 e.None of these choices are correct.
- Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates it to Hilda for $12,000. a. If Hilda is a holder in due course, how much can she recover from Marcus? How much from Parish? If Marcus’s negligence substantially contributed to the making of the alteration, how much can Hilda recover from Marcus and Parish, respectively? b. If Hilda is not a holder in due course, how much can she recover from Marcus? How much from Parish? If Marcus’s negligence substantially contributed to the making of the alteration, how much can Hilda recover from Marcus and Parish, respectively?(1).Suppose you are in a contributory negligence state and you are the victim in an accident in which you are injured and you sustain $100,000 worth of damages in the form of medical bills and another $100,000 for loss of consortium. You sue the responsible party and a jury decides that you were 20% at fault and the defendant was 80% at fault. How much would you collect from the defendant in this state? A. $200,000 B. $160,000 C. $40,000 D. $0 (2).Leah and Barrett are held jointly and severally liable for Abby’s injury. The court determines that Leah is 10% at fault while Barrett is 90% at fault. The medical expenses that Abby incurs amount to $5,000. Under the joint and several liability law, what is the maximum amount that Leah might be required to pay? A. $500 B. $0 C. $5,000 D. $4,500Virginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $6,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss? $14,000 $8,000 $10,000 $4,000 None of the above
- 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.LO.2 Determine the effect on gross income in each of the following cases: a. Eloise received 150,000 in settlement of a sex discrimination case against her former employer. b. Nell received 10,000 for damages to her personal reputation. She also received 40,000 in punitive damages. c. Orange Corporation, an accrual basis taxpayer, received 50,000 from a lawsuit filed against its auditor who overcharged for services rendered in a previous year. d. Beth received 10,000 in compensatory damages and 30,000 in punitive damages in a lawsuit she filed against a tanning parlor for severe burns she received from using its tanning equipment. e. Joanne received compensatory damages of 75,000 and punitive damages of 300,000 from a cosmetic surgeon who botched her nose job.On July 24 of the current year, Sam Smith was involved in an accident with his business use automobile. Sam had purchased the car for 30,000. The automobile had a fair market value of 20,000 before the accident and 8,000 immediately after the accident. Sam has taken 20,000 of depreciation on the car. The car is insured for the fair market value of any loss. Because of Sams history, he is afraid that if he submits a claim, his policy will be canceled. Therefore, he is considering not filing a claim. Sam believes that the tax loss deduction will help mitigate the loss of the insurance reimbursement. Sams current marginal tax rate is 35%. Write a letter to Sam that contains your advice with respect to the tax and cash flow consequences of filing versus not filing a claim for the insurance reimbursement for the damage to his car. Also prepare a memo for the tax files. Sams address is 450 Colonels Way, Warrensburg, MO 64093.