Donald, an accountant, was falsely accused of fraud by a local newspaper. He sued the newspaper for libel claiming damages both to his personal reputation in the community and to his business. In December of the current year, the jury awarded Donald the following: $10,000 for his personal reputation $70,000 for his business loss $70,000 as punitive damages (to punish the newspaper) How much can Donald exclude from gross income?

A. $0

B. $10,000

C. $70,000

D. $80,000