Multiple Choice 2-19 Employee Fringe Benefits (LO 2.5) Air Suppliers Inc. provides group term insurance to all its employees for policies up to $250,000. Michelle, an Air Suppliers employee, has a $100,000 policy. The cost of the policy is $50 per month, all of which is paid by Air Suppliers. Which of the following best describes how much gross income Michelle will recognize for this employee benefit? Oa. Michelle will recognize no gross income. Ob. Michelle must recognize the annual cost of the policy ($600) as gross income. Oc. Michelle will recognize no gross income but if she dies, the beneficiary will pay taxes on the life insurance benefits paid. Od. Michelle will recognize gross income for the value of the life insurance above $50,000.