42. On February 10, 2012, Rose was in an automobile accident while she was going to work. The doctor advised her to stay home for six months due to her injuries. On February 25, 2012, she les a lawsuit. On July 20, 2012, Rose returned to work. On December 15, 2012 the lawsuit was settled received the following amounts: Compensation for lost wages $25,000 Personal injury damages awarded (none of which was for punitive damages) 40,000 How much of the settlement must Rose include in ordinary income on her 2012 tax return? a. $0 b. $25,000 C. $40,000 d. $65,000