How much should Lea include in her gross income

Reference no: EM131881717

Question: 1. Greg died on July 1, 2016, and left Lea, his wife, a $50,000 life insurance policy which she elects to receive at $5,000 per year plus interest for 10 years. In the current year, Lea receives $5,900. How much should Lea include in her gross income?

2. In June of 2016, Kevin inherits stock worth $125,000. During the year, he collects $6,500 in dividends. How much of these amounts, if any, should Kevin include in his gross income for 2016 and why?

Reference no: EM131881717

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