Linda was involved in an auto accident in which she was at fault. Her own car sustained $3,793 damages and the other vehicle cost $992 to repair. Linda was not injured, but the driver of the other car required medical treatment costing $8,968 and a passenger's injuries totaled $22,135. There was additional property damage in the amount of $3,596. Linda's policy includes 50/100/50 liability, $250 deductible collision and full coverage comprehensive. How much of the damages must Linda pay? a. $250 b. $3,543     c. $4,785 d. $39,484

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?

You damage your car in an accident that is covered by your collision insurance, which has a $200 deductible.  If the damage to your car costs $1,200, the insurance company would pay ___.

Jorge and his wife own a beachfront vacation home in Savannah, Georgia. During the year, high winds from a tropical storm shatter a sliding glass door and rain from the storm causes extensive water damage to the kitchen. The Savannah area qualified for federal disaster relief. Fortunately, during a calm in the storm, Jorge is able to board up the door, which limits the water damage to the kitchen. The items damaged in the storm are:   Cost ValueBefore ValueAfter InsuranceProceeds Kitchen furniture $2,085   $1,325   $430   $510     TV 265   200   0   115     Refrigerator 1,000   920   90   775     Linoleum flooring 1,645   880   0   470     In addition, Jorge pays $610 to replace the sliding glass door. The insurance company will not reimburse him for the cost of the new door because the old sliding glass door did not meet the company's standards for a hurricane area. The amount of Jorge's casualty loss before considering any annual limitations that may apply is…