Taxpayer was sexually assaulted by the manager. Taxpayer was also turned down for a promotion because of the taxpayer's gender. Taxpayer sues and recovers $40,000 from the manager and $50,000 from the employer. What are the tax consequences for taxpayer?

A- Taxpayer has no gross income.

B- Taxpayer has $40,000 gross income.

C- Taxpayer has $50,000 gross income.