Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($3,700), her emotional distress ($6,000 − she now fears peanut butter), and punitive damages ($44,000). What amount must Pam include in her gross income?
a. $44,000
b. $50,000
c. $47,700
d. $9,700
e. Zero - none of the benefits are included in gross income.