Monica, age 40, receives $150,000 of face value term life insurance from her employer as an employee benefit. The employer pays the premium equal to $300 for Monica. As a result, Monica will have the taxable income of ____? (Table 79 table costs are $0.10 for age 40 - 44).

1. $0 (a non-taxable benefit).

2. $120 (40% of the premium).

3. $200 (2/3 of the premium).

4. $300 (the full premium).