In 2015 Randall suffered bodily injury while at work. On his 2015 tax return, Randall deducted related medical expenses of $10,000 and $5,000 in 2016. In 2017, Randall won a workers’ compensation claim and prevailed in an injury lawsuit, both in connection with the 2015 injury. Randall received the following in 2017 as settlement:
Punitive damages .............................................................................    $150,000
Workers’ compensation ...................................................................        50,000
Reimbursement for medical expenses ..........................................        25,000
Compensation for emotional distress caused by the injury ........       15,000
What amount of the settlement should be excluded from Randall’s 2017 gross income?
a. $ 75,000
b. $ 60,000
c. $ 90,000
d. $165,000