Matt is the beneficiary of a $125,000 insurance policy on the life of his mother, Chloe. To date, Chloe has paid premiums of $55,000. What amount of gross income must be reported in each of the following cases? a. Chloe elects to cancel the policy and receives $75,000, the cash surrender value of the policy. b. Chloe dies and Matt receives the face amount of the policy, $125,000. c. Chloe dies and Matt elects to receive $38,250 per year for four years.