Dominique, age 57, participates in an employer-sponsored group term life insurance plan. According to Treasury tables, the cost of $1,000 of life insurance for a 57-year-old person is 43 cents per month.

Required:

1. Determine the taxable income that Dominique must recognize assuming that the plan provides $40,000 coverage.
2. Determine the taxable income that Dominique must recognize assuming that the plan provides $275,000 coverage.