1) Will sustained a serious injury in the course of his employment. As a result of this injury, he received the following payments:

Workers Compensation $2,500

Compensatory damages for physical injuries $1,000

Punitive damages $6,000

Will's AGI is:

2) Harold is covered by a $180,000 group term life insurance policy and his daughter is the beneficiary. Harolds employer pays the entire cost of the policy for which the uniform annual premium is $8 per $1,000 of coverage. How much of this premium is taxable to Harold?