Early in the Year, Marion Was in an Automobile Accident

Early in the year, Marion was in an automobile accident during the course of his employment.As a result of the physical injuries he sustained, he received the following payments during the year: $\begin{array}{lr}\text { Reimbursement of medical expenses Marion paid by a medical }\\\text { insurance policy he purchased } & \$ 10,000 \\\text { Damage settlement to replace his lost salary } & 15,000\end{array}$ ? What is the amount that Marion must include in gross income for the current year?

A) $25,000.
B) $15,000.
C) $12,500.
D) $10,000.
E) $0.