Omar received $200,000 of proceeds 27. Omar's wife passed away this from life insurance on his wife, and amount must Omar include in his gross income? year. After her death, $800,000. What he inherited his wife's stock portfolio worth a. $1 million b. $800,000 $500,000 d. Zero but only if Omar does not opt to receive the life insurance proceeds in a lump sum e. Zero None of these benefits is included in gross income 28. Manny is a student who has received an engineering scholarship to The University of California. The scholarship paid $14,000 for tuition, $2,500 for fees, and $1,000 for books. In addition, Manny's dormitory fees of $8,500 were paid by the University when he agreed to be a resident assistant in the dorm. What amount must Manny include in his gross income? a. $9,500 b. $11,000 .$2,500 d. $8,500 e. Zero - None of these benefits is included in gross income 29. A taxpayer's at-risk amount in an activity is increased by: a. cash contributions to the activity b. a reduction in the amount of debt related to the activity that the taxpayer is responsible for paying c. cash distributions from the activity d. A and B e. A and C