3. Arina has a $200,000 life insurance policy on which she paid $30,000 in premiums over 5-years. In 2019, she sold the policy to Casey for $109,000. Casey held the policy and paid premiums totaling $1200 to maintain the policy. When Arina died, Casey received $200,000 from the Insurance Company. i. How much income must Arina recognize? ii. How much income must Casey recognize? iii. If Arina was terminally ill, how much of the income would Casey recognize? 4. Jay, age 19, is a full-time student at the City University. During 2019, he received the following payments: Cash award for being the outstanding resident adviser State scholarship for ten months (tuition and books) State scholarship (meals allowance) Loan from college financial aid office Cash support from parents What amount is taxable in gross income for 2019? $2,500 6,000 2,400 3,000 2,000 5. Carin, a widow, elected to receive the proceeds of a $200,000 life insurance policy on the life of her deceased husband in 10-installments of $22,000 per year. Her husband had paid premiums of $55,000 for the policy. In the first year, Carin collected $22,000 from the insurance company. Required: how much of the amount received this year, must Carin include in income? 6. Khalid is Single with no dependents and has the following during 2019 year: Interest on PG County bonds $ Gain on the sale of PG County bonds Wages 120,000 Workmen's compensation Itemized deductions 600 500 120.000 1,200 10.500 Required: a. Calculate Taxable income b. Calculate Khalid's Tax liability END