Barbara was injured in an automobile accident she has

Assignment Help Accounting Basics

Reference no: EM13571172

Barbara was injured in an automobile accident. She has threatened to file a suit against the other party involved in the accident and has proposed the following settlement:

Damages for 25% loss of the use of her right arm $150,000
Medical expense 30,000
Loss of wages 10,000
Punitive damages 60,000
$250,000

The defendant's insurance company is reluctant to pay punitive damages. Also, the company disputes the amount of her loss of wages amount. Instead, the company offers to pay her $210,000 for damages to her arm and $30,000 medical expenses. Assuming Barbara is in the 35% marginal tax bracket, will her after-tax proceeds from accepting the offer be equal to what she considers to be her actual damages?

Reference no: EM13571172

Questions Cloud

Imagine the us as a nation that did not practice any types : imagine the u.s. as a nation that did not practice any types of religion. explain how this might affect society. from

Cmputers r us is open seven days a week and has a daily : computers r us is open seven days a week and has a daily payroll of 1750. employees are paid every friday december 31

Search the securities and exchange commissions edgar : search the securities and exchange commissions edgar corporate filings data base at httpwww.sec.govedgarhp.htm for the

Thirty years later in 1988 the average cost was 13 700 what : in 1958 the average tuition for one year at an ivy league was 1800. thirty years later in 1988 the average cost was 13

Barbara was injured in an automobile accident she has : barbara was injured in an automobile accident. she has threatened to file a suit against the other party involved in

Prepare a research proposal for a correlational research : questionprepare a research proposal for a correlational research study based on the following research topicage and job

Lowe manufacturing co warrants its products for one year : lowe manufacturing co. warrants its products for one year. the estimated product warranty is 4 of sales. assume that

Zorro manufacturing had always made its components in house : zorro manufacturing had always made its components in house. however simpson components works had recently offered to

Classify each of the following items as belonging in the : classify each of the following items as belonging in the revenue expenditure human resourcespayroll production or

User Account

All Pages