Last year, Mr. Morris itemized his deductions on his federal return; this year he also received a refund from the state of California. Which of the following is not considered a recovery (taxable) in California of an item previously deducted?

a) A refund of a medical expense deducted in a prior year.
b) Reimbursement of an employee business expense deducted in a prior year.
c) Refunded mortgage interest.
d) Self-Employment Tax.