Research Memo Problem (settlement) Patsy Pancake got hit in the face with a foul ball at the sports park. She has sued the sports park for her injury that resulted from improper protection barriers at the park. Patsy received her settlement, which was $100,000 for the medical expenses, $50,000 for the emotional distress resulting from the swollen face and $120,000 punitive damages for the improper protection barriers. Patsy is excited because she has heard that settlement income is not taxable. Use the RIA tax service to determine how much, if any, of Patsy's settlement income is taxable