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Bill was severely injured when he was hit by a car while jogging. He spent one month in the hospital and missed three months of work because of the injuries. Total medical costs were $60,000. Bill received the following payments as a result of the accident:

  • His employer-provided accident insurance reimbursed him for $48,000 of the medical costs and provided him with $3,800 in sick pay while he was out of work.
  • A private medical insurance policy purchased by Bill paid him $12,000 for medical costs.
  • His employer gave Bill $6,000 to help him get through his rehabilitation period.
  • A separate disability policy that Bill had purchased paid him $4,000.

How much gross income does Bill have as a result of the payments received for the accident?

Project Management, Management Studies

  • Category:- Project Management
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