John is the beneficiary of a $200,000 insurance policy on the life of his mother, Jane. To date, Jane has paid premiums of $55,000. Requirement What amount of gross income must be reported in each of the following cases? a. Jane elects to cancel the policy and receives $135,000, the cash surrender value of the policy. b. Jane dies and John receives the face amount of the policy, $200,000. c. Jane dies and John elects to receive $56,000 per year for four years. a. Jane elects to cancel the policy and receives $135,000, the cash surrender value of the policy. A. John must include $135,000 in his income. B. John must include $80,000 in his income. C. Jane must include $80,000 in her income. D. Jane must include $135,000 in her income. b. Jane dies and John receives the face amount of the policy, $200,000. (Enter "0" if none of the gross income is taxable.) The amount John must include in his income: c. Jane dies and John elects to receive $56,000 per year for four years. (Enter "0" if none of the gross income is taxable.) The amount John must report as income each year for four years