Dear tutor,

I am having trouble trying to figure out this answer. Could you please help me and as well explain the reasoning behind your answer?

Gifts and Inheritances Practice

Hanna, a cash basis taxpayer, was owed $50K accrued salary at her death.The right to receive Hanna's accrued salary was transferred to Wade, her sole beneficiary.Hanna owned thousands of shares of stock in her corporate employer for which she had paid $40K.Her employer was required to purchase the stock for $200K at her death.The employer had an insurance policy on Hanna's life that paid the corporation $200K in death benefits.Wade received $250K when Hanna died.

How much gross income does Wade have?

How much gross income does employer have?

Thankyou!