LO.2 Determine the gross income of the beneficiaries in the following cases:

a. Justin lost his job when his employer moved the plant to China. His employer gave Justin $15,000 to help him in his transition to a new job, even though the employer was not legally obligated to make the payment.

b. Trina was injured while working. She collected $1,200 in workers’ compensation and

$1,500 on a loss of income policy she had purchased.

c. Coral Corporation collected $1 million on a key person life insurance policy when its chief executive died. The corporation had paid the premiums on the policy of $77,000.

d. Juan collected $50,000 on a life insurance policy when his wife, Leona, died. The policy was provided by Leona’s employer, and the premiums were excluded from Leona’s gross income as group term life insurance.

e. Juan in part

(d) collected Leona’s accrued vacation pay of $6,000 from her employer.