During the current year, Khalid was in an automobile accident and suffered physical injuries. The accident was caused by Rashad's negligence. Khalid threatened to file a lawsuit against Amber Trucking Company, Rashad's employer, claiming $50,000 for pain and suffering, $90,000 for loss of income, and $70,000 in punitive damages. Amber's insurance company will not pay punitive damages; therefore, Amber has offered to settle the case for $100,000 for pain and suffering, $90,000 for loss of income, and nothing for punitive damages. Khalid is in the 35% marginal tax bracket. What is the after-tax difference to Khalid between Khalid's original claim and Amber's offer?

a.Amber's offer is $20,000 less. ($50,000 + $90,000 + $70,000 - $100,000 - $90,000).

b.Amber's offer is $7,000 less. [($50,000 + $90,000 + $70,000 - $100,000 - $90,000)0.35)].

c.Amber's offer is $4,500 more. {$190,000 - ($50,000 + $90,000) + [$70,000(1.00 - 0.35)]}.

d.Amber's offer is $22,000 more. [($190,000 - $210,000) + ($120,0000.35)].

e.None of these.