Reported to the environmental protection agency

Reference no: EM131099494

Research Problem 1. Murray reported to the Environmental Protection Agency that his employer was illegally dumping chemicals into a river. His charges were true, and Murray's employer was fined. In retaliation, Murray's employer fired him and made deliberate efforts to prevent Murray from obtaining other employment. Murray sued the employer, claiming that his reputation had been damaged. Murray won his lawsuit and received an award for "damages to his personal and professional reputa- tion and for his mental suffering.

" Now he would like to know whether the award is taxable. He argues that he was awarded damages as a recovery of his human capital and that a recovery of capital is not income. Therefore, the Federal government does not have the power to tax the award.

Reference no: EM131099494

Questions Cloud

Relying on accounting to avoid forecast errors : 10.1 RELYING ON ACCOUNTING TO AVOID FORECAST ERRORS. The chapter states that forecasts of financial statements should rely on the additivity within financial statements and the articulation across financial statements to avoid internal inconsisten..

Random variable with probability density function : Let X be a random variable with probability density function f(x) = 3 / (1+x)^4, x>0 zero otherwise

Classifying costs as factory overhead : Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks?

Mean profit and standard deviation of profit : Find the mean profit and the standard deviation of the profit. Gabelli Partners owes its source of capital a fee of $200,000 plus 10% of the profits X. So thefirm actually retains Y = 0.9X - 0.2 from the investment. Find the mean and standard devi..

Reported to the environmental protection agency : Research Problem 1. Murray reported to the Environmental Protection Agency that his employer was illegally dumping chemicals into a river. His charges were true, and Murray's employer was fined.

Is it still the same as that number : If the true price level during the war was actually 20% higher than reported, would that mean real GDP is higher than the official number reported in question 10b (states GDP growth to be 189%), lower than that number, or is it still the same as t..

What is the expected net gain : Should she expect to break even by playing this way since the payoff is 1:1? Does she have a 50/50 chance of winning each time the wheel is spun? What is the expected net gain? Explain.

Discuss the costs of making collective decisions in large : What do these costs have to do with the viability of large and small groups?

Probability that a randomly selected customer : Over the past 3 months, 70,600 purchases were made, and 22,200 of them were paid for by credit card. What is the probability that a randomly selected customer will pay by credit card?

User Account

All Pages