Reuben Chechetto Had to Take His Employer to Court in 2020

Reuben Chechetto had to take his employer to court in 2020, to sue for wages owing to him over an 8 year period ending in 2020. In the 2020 taxation year, he receives a court settlement of $80,000, or $10,000 per year. In all years, Reuben had taxable income of $60,000. What will the tax consequences be with respect to the $80,000 in back wages received in 2020?

A) Mr. Chechetto will have to report the full $80,000 in additional wages in 2020.
B) As these funds were awarded through a court settlement, they are not taxable.
C) Mr. Chechetto can use a special relief mechanism in the Income Tax Act which will have the effect of spreading the lump-sum payment over a maximum period of 5 years.
D) Mr. Chechetto can use a special relief mechanism in the Income Tax Act which will have the effect of spreading the lump-sum payment over the 8 taxation years affected.