Court Awards and Insurance Settlements. What amount, if any, must be included in gross income by the following taxpayers?

Court Awards and Insurance Settlements. What amount, if any, must be included ingross income by the following taxpayers? a. Ann received $2,000 from her insurance company when her automobile which cost$3,000 was stolen. b. Barry received $3,000 from his brother. Barry had initiated a lawsuit against hisbrother in an effort to recover $3,000 he had previously loaned to him. The brotherpaid Barry back before the case was tried, and Barry dropped the lawsuit. c. Carry, an accountant, sued a client in order to collect her fee for doing tax work.Would Carry’s accounting method make any difference? d. Dave has incurred $6,000 of medical expenses so far this year. He paid $400 of theexpenses himself. His insurance company paid $4,000 of the expenses. The hospital is suing Dave and the insurance company for the balance, $1,600.

Court Awards and Insurance SettlementA.) Amount deductible = $3,000- $2,000=$ 1,000 (loss from theft of car)B.) Amount Deductible = $3,000 - $3,000= $ -0- (the full amount was recovered)C.) If...