Acme published a story about Paul and as a result Paul sued Acme for damage to his reputation, emotional distress, and punitive damages. Paul won an award of $28,750 for damages, $5,600 for emotional distress, and $66,750 for punitive damages. What amount must Paul include in his gross income?

Multiple Choice

1. $5,600.
2. $28,750.
3. $66,750.
4. $95,500.
5. All of these benefits are included in gross income.