Jake is the beneficiary of a life insurance policy taken out by his father several years ago. Jake's father dies, and Jake has the option of receiving the $112,000 face value of the policy in cash or receiving annual payments of $1,600 per month for the rest of his life. Jake is now 65. Jake's father paid $44,000 in premiums over the years.

a.	How much must Jake include in gross income this year if he accepts the $112,000 faceamount?
b.	AssumeJake elects to receive the annual payments. What is his life expectancy?
c.	What is his annual exclusion?
d.	How much must he report as income each year?