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35.  LO5 Determine the tax treatment of the payments received in each of the following cases:
a.  Anastasia is covered by her employer’s medical insurance policy. During the cur- rent year, the policy reimburses her for $960 of the $1,200 in medical costs she incurred.
b.   Alfredo, who is self-employed, is injured in a snowmobile accident. The insurance he purchased covers $3,200 of the $3,900 in medical costs related to the accident. It also pays him $2,000 to cover the income he loses during his recuperation.
c.  Libby is injured when a company truck backs over her at a warehouse. The company pays her $2,200 in medical expenses from its self-insured medical reim- bursement plan. (All employees are covered by the plan.) During her recuperation, the company pays her normal $1,300 salary. In addition, she receives  $600 from an insurance policy the company purchased to cover its liability to injured employees.
d.   Shortly after beginning work for El Dorado Corporation, Manny is injured when a lathe he is operating breaks his leg. Because he has not worked for the company long enough to qualify for employee medical insurance coverage, the company pays his $800 medical bill.
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