Alfred owned a term life insurance policy at the time he was diagnosed as having a terminal illness. After paying $53,750 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $376,250. When Alfred died 18 months later, the company collected the face amount of the policy, $451,500. As a result of the sale of the policy, how much is Alfred required to include in his gross income? x