Norman and Ciara are trying to calculate their gross income for the current year. Which of the following items should they exclude from their gross income? -1- Cash inherited by Ciara from her mother. -2- Money borrowed by Norman and Ciara from First City Bank. -3- Gain from the sale of Norman and Ciara's boat. -4- Interest earned on a loan made by Norman to his cousin Vinnie.

1 and 2.

3 and 4.

1, 2 and 3.

1, 2 and 4.