During the Year, Ted Knight Received Worker's Compensation Payments Totaling

During the year, Ted Knight received worker's compensation payments totaling $10,000 as a result of an injury he suffered at work. His only other source of income for the year was his wages of $25,000. Which one of the following represents Ted's Net and Taxable Incomes for the year?

A) Net Income $25,000, Taxable Income $25,000.
B) Net Income $30,000, Taxable Income $30,000.
C) Net Income $35,000, Taxable Income $25,000.
D) Net Income $35,000, Taxable Income $35,000.