a.

Saul paid $16,000 premiums on his ordinary life insurance policy. He held the policy for 15 years and cashed it in prior to his death and received the cash-surrender value of $45,000. In the year Saul received the $45,000, he must include what amount in gross income?

		$0
		$16,000
		$45,000
		$29,000

b.

Roger, age 19, is a full-time student at State College and a candidate for a bachelor's degree. During 2021, he received the following payments:

State scholarship for ten months (tuition) $1,500 State scholarship for ten months (room and board) 2,500 Cash support from parents 3,000

Cash prize awarded in contest __ _500

Total $7,500

What is Roger's adjusted gross income for 2021?

		$500
		$1,500
		$7,500
		$3,000