Gifts and Inheritances $($LO $2\mathrm{.}11)$

In June of $2022,$ Kevin inherits stock worth $$125,000.$ During the year, he collects $$5,600$ in dividends from the stock.

How much of these amounts, if any, should Kevin include in his gross income for $2022?$

$$

Why?

Inheritances are included in taxable income and subsequent earnings on inherited property are excluded from $$ income.