Wes was a major league baseball pitcher who earned $10 million for his 20 wins this year. Sam was also a major league baseball pitcher before a career-ending injury caused by a negligent driver. Sam sued the driver and collected $6 million as compensation for lost estimated future income as a pitcher and $4 million as punitive damages.

a. Do the amounts that Wes and Sam receive have the same effect on their gross income?

No

b. Enter the amount, if any, to be included in the gross income for Wes and Sam.

Note: Enter your answer in millions.

Wes: $ 10 Million

Sam:

$X Million

The answer is not 25 million

Question

Business

Kaila Stone

17 February, 10:03

Wes was a major league baseball pitcher who earned $10 million for his 20 wins this year. Sam was also a major league baseball pitcher before a career-ending injury caused by a negligent driver. Sam sued the driver and collected $6 million as compensation for lost estimated future income as a pitcher and $4 million as punitive damages.

a. Do the amounts that Wes and Sam receive have the same effect on their gross income?

No

b. Enter the amount, if any, to be included in the gross income for Wes and Sam.

Note: Enter your answer in millions.

Wes: $ 10 Million

Sam:

$X Million

The answer is not 25 million

+4

Answers (1)

Know the Answer?

Thornton · Answer 1

Answer: A. No

B. Wes $10million, Sam $4million

Explanation:

For individuals and households, gross income is the total sum of all salaries, wages, interest payments, profits, rents, and other forms of earnings, before any taxes or deduction is made. The amount Wes and Sam receive does not have the same gross income, this is because Wes receives $10million and Sam receives $4million