Niva, a widow, elected to receive the proceeds of a $$150,000$ life insurance policy on

the life of her deceased husband in $10$ installments of $$17,500$ each. Her husband

had paid premiums of $$60,000$ on the policy. In the first year, Niva collected $$17,500$

from the insurance company. She must include in income:

$$2500$

$$10,000$

$$15,000$

$$0$