Jeff is the beneficiary of a $150,000 insurance policy on the life of his mother. Sarah. To date. Sarah has paid premiums of $20.000. Requirement What amount of gross income must be reported in each of the following cases? a. Sarah elects to cancel the policy and receives $110,000, the cash surrender value of the policy. b. Sarah dies and Jeff receives the face amount of the policy, $150,000. c. Sarah dies and Jeff elects to receive $45,000 per year for four years. a. Sarah elects to cancel the policy and receives $110,000, the cash surrender value of the policy. A. Jeff must include $90,000 in his income. B. Sarah must include $90,000 in her income C. Sarah must include $110,000 in her income. D. Jeff must include $110,000 in his income. b. Sarah dies and Jeff receives the face amount of the policy, $150,000. (Enter for if none of the gross income is taxable.) The amount Jeff must include in his income: c. Sarah dies and Jeff elects to receive $45,000 per year for four years. Enter "or if none of the gross income is taxable The amount Jeff must report as income each year for four years