Pam Recently Was Sickened by Eating Spoiled Peanut Butter

Multiple Choice

Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($4,560) , her emotional distress ($6,000-she now fears peanut butter) , and punitive damages ($61,500) . What amount must Pam include in her gross income?

A) $61,500
B) $67,500
C) $66,060
D) $10,560
E) $0-none of these benefits are included in gross income.