Lupita dies in 2022 but has a $1 million life insurance policy that lists her spouse, M’Baku as the beneficiary. M’Baku elects to receive all $1 million in a lump sum and spends $200,000 immediately on a new yacht. M’Baku’s gross income from the life insurance is:

a. $0

b. $200,000

c. $800,000

d. $1,000,000