How much is required to be included in gross income in each scenario?

Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays $56,000 in premiums for the policy during her life. When she dies, Jason collects the insurance proceeds of $840,000. As a result, how much gross income does Jason report? $840,000 $0 $56,000 $784,000 $840,000 Alfred owned a term life insurance policy at the time he was diagnosed as having a terminal illness. After paying $59,150 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 $414,050. When Alfred died 18 months later, the company collected the face amount of the policy, $496,860. As a result of the sale of the police how much is Alfred required to include in his gross income? $354,900 x Incorrect $0 $59,150 $354,900 $414,050 $496,860