3. The Internal Revenue Code at times, seems to provide different tax treatment to similar situations. In the following situations, explain why the tax treatment to the taxpayers may differ, making sure that you indicate any rules or logic for the difference (4 POINTS) a. Stella and Lucy each cash in their life insurance policy prior to their death. They each receive $100.000 and paid $25,000 in premiums. Both Stella and Lucy used the money to buy a new boat, but Stella has recently been diagnosed as terminally ill, whereas Lucy is in good health. How much Income will Stella recognize and how much Income will Lucy? Explain how you came to your conclusion