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