1. Able is the owner and beneficiary of a $30,000 life insurance policy on Baker. Able sold the policy for $10,000 to Carr, who subsequently pays $6,000 of premiums on the policy. When Baker dies, Carr collects $30,000 of life insurance proceeds. What are the tax consequences to Carr of receiving the $30,000 of life insurance proceeds?

	a.	Carr's gross income is $30,000 because this was a transfer for value
	b.	Life insurance proceeds are excluded from income, so Carr includes $0 in gross income
	c.	Carr's gross income is $20,000 ($30,000 less $10,000)
	d.	Carr's gross income is $14,000 ($30,000 less $10,000 less $6,000)

2. An employee can exclude from gross income the value of meals provided by his or her employer whenever:

	a.	The meal is not extravagant.
	b.	The meals are provided on the employers premises for the employers convenience.
	c.	There are no places to eat near the work location.
	d.	The meals are provided for the convenience of the employee.